Oyo narrows losses by half in FY22; IPO plans likely back on track | The Financial Express

Oyo narrows losses by half in FY22; IPO plans likely back on track

Helped by travel resumption, the hospitality firm’s gross bookings value per hotel in Q1FY23 stood at Rs 3.25 lakh.

Oyo narrows losses by half in FY22; IPO plans likely back on track
Total costs went up to Rs 6,984 crore in FY22 from Rs 6,937 crore in FY21. (IE)

Hotel aggregator Oyo registered a loss of Rs 414 crore during the April-June quarter of the current fiscal, according to the latest addendum filed by the company with the Securities and Exchange Board of India (Sebi). In FY22, the company’s loss from operations narrowed to Rs 2,140 crore from Rs 4,103 crore in FY21.

Oyo claimed its maiden adjusted Ebitda during the April-June quarter at Rs 7 crore.

The company’s revenue from operations during the April-June period stood at Rs 1,459.3 crore. In FY22, with Covid-related restrictions lifted, revenue from operations went up 20.7% to Rs 4,781.4 crore from Rs 3,962 in FY21. However, Oyo was still far behind its pre-Covid annual revenue of Rs 13,413 crore in FY20. It had registered a net loss of Rs 10,419 crore that year.

According to Bloomberg, the company is now targeting an IPO in early 2023 (likely in January) if market conditions are favourable. It had filed a draft red herring prospectus with Sebi in October 2021 to raise Rs 8,430 crore, but had later scrapped the plan.

Also read: FM Sitharaman to meet chiefs of state-run banks to review schemes for SCs

Total costs went up to Rs 6,984 crore in FY22 from Rs 6,937 crore in FY21. General administrative expenses at Rs 515.4 crore were down 44.4% from Rs 927 crore in FY21. The employee expenses, net of Esop-based compensation reduced by 26.5% in FY22 to 1,117.2 crore.

Not convinced by the company’s positive Ebitda, TV Mohandas Pai, chairman, Aarin Capital, and former chief financial officer of Infosys, said, “This is fake accounting. There is nothing like an adjusted Ebitda. They (Oyo) are trying to mislead investors by such fake accounting. Regulators and stock exchanges should stop such misreporting in India. All this is to misreport and mislead investors, if you carry on like this you can even have a net profit.”

Also read: Eye on ‘sustainable finance’: Banks to seek wider priority sector ambit

Helped by travel resumption, the hospitality firm’s gross bookings value per hotel in Q1FY23 stood at Rs 3.25 lakh. In FY22, it was at Rs 2.21 lakh. Its storefronts during the April-June quarter were at 168,000, up from 157,000 at the end of FY21.

The company said it has acquired Direct Booker, a Croatian vacation rental company, and Denmark based-holiday home Bornholmske Feriehuse. The company’s main markets are India, Northern Europe, Indonesia and Malaysia.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.