Oyo Hotels and Homes Private Limited Ltd reported a significant decline in revenue for FY24, with a decline of 15% year-on-year. INRFrom 131.2 billion yen INR111.3 billion in the fiscal year. According to information filed with the Registrar of Companies this week, the company reported the following profits: INR$11.5 billion loss INR270 billion dollars in FY23. This is primarily due to reductions in total expenses, including: INRSpecial items increased by $6 billion compared to the previous year’s loss, resulting in positive growth.
Exceptional items included cancellation of severance and employee-related expenses. It also made adjustments to the cost of stock-based payments and stock options granted to employees, and revoked legal provisions that may not have occurred.
According to 2020-to-date financial reports accessed through business intelligence platform Tofler, the company saw an increase in net income from fiscal year 2020, even though it was in the red. INR$390 million that year INRNet profit for FY24 was 11.4 billion yen. However, operating revenue has also declined significantly, dropping nearly 80% in the past four fiscal years from FY2020. INRFrom 553.8 billion yen INR1,113.8 million in FY2013.
overcome challenges
Oyo Hotels, a wholly owned subsidiary of Oravel Stays Ltd, markets, manages and operates hotels, long- and short-term stay homes, guesthouses and other lodging facilities. We provide technical know-how and training in the field of operation and management of hotels, motels, etc., and sell and manage these properties.
Last week, the company changed its hotel policy in Uttar Pradesh to exclude unmarried couples from staying in its rooms, which drew a lot of attention on social media. A new check-in policy instituted in Meerut prohibits couples from checking in unless they can prove they are married. We also told our hotel and motel partners that they may refuse reservations if they do not follow the guidelines. In the same week, Oravel’s board approved the issue of 12,91,07,982 equity shares at a price of Rs. INR$42.6 per share, expected to increase INR550 million (approximately million dollars).
Oyo has withdrawn its initial public offering (IPO) plans twice in the past two years. In May 2024, due to technical reasons, the company decided to withdraw its IPO plan in order to refinance its $450 million term loan at a lower interest rate. This move will save the company between $8 million and $10 million in interest expenses in the first year.
