Travel tech company, OYO reported a net loss of Rs 333 crore in the second quarter down from Rs 414 crore in the first quarter. The company shared its H1 results with the Securities and Exchange Board of India (SEBI) on Saturday.
OYO's adjusted EBITDA grew eight times from Rs 7 crore to Rs 56 crore in the first and second quarter, respectively.
The IPO-bound company also mentioned in its addendum that the revenues in H1 of FY23 grew 24 per cent to Rs 2,905 crore. OYO also reported a 69 per cent increase in its gross booking values (GBV). GBV is the monthly revenue the company earns per hotel.
Despite reduction in losses, some of the company’s key expenses continued to increase as per the results. Its marketing and promotional expenses grew by 19 per cent in H1FY23 to Rs 400 crore from Rs 336 in H1FY22.
Similarly in the case of employee benefit expenses which grew by 5 per cent.
Sources close to the company revealed that the ongoing third quarter will be the most important one to watch for OYO’s performance as it’s the peak season for travel in India and some of the other geographies OYO operates in. “The company will need to show another quarter of growing EBITDA for the market to start judging if this performance trajectory is sustainable. This will be the most important parameter if the company does decide to launch its IPO in the first quarter of 2023. The overall market will also need to be conducive towards growth stocks which seem to be out of favour currently,” the source said.
Currently, OYO operates through 157,000 hotels and storefronts in 35 countries across India, Europe, and Southeast Asia.
The results come weeks after the Competition Commission of India (CCI) imposed monetary penalties of Rs 168.88 crore on OYO (which is owned by Oravel Stays Limited) for indulging in unfair business practices in the hotel segment. The CCI, in a 131-page order, said that it has carried out an in-depth analysis for delineation of relevant markets, laying special emphasis on such assessment in case of platform markets. However, the National Company Law Appellate Tribunal (NCLAT) imposed a stay on the order.
After weathering tough two years owing to the COVID-19 pandemic, company revived its stock market plans this year. Its proposed issue comprised a fresh issue of equity shares aggregating up to Rs 7,000 crore and an offer for sale to the tune of Rs 1,430 crore, as per its DRHP. The unicorn which was founded in 2012 by Agarwal is preparing to make its debut on the stock market in 2023, according to a Bloomberg report.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today