Travel tech platform Oyo has reported a profit after tax of Rs 158 crore for the second quarter of the current fiscal, according to founder Ritesh Agarwal's recent announcement.
In the same period last year, Oravel Stays Ltd., Oyo's parent company, recorded a loss of Rs 50 crore.
In comparison, Oyo's profit after tax for the first quarter was Rs 132 crore. The company also experienced a revenue increase in the second quarter, reaching Rs 1,578 crore, up from Rs 1,413 crore in the first quarter.
Oyo recently completed its acquisition of G6 Hospitality, the US-based economy lodging franchisor and parent company of the well-known Motel 6 and Studio 6 brands, from Blackstone. This move is part of Oyo's strategy for international expansion.
The all-cash deal will significantly bolster Oyo's presence in the US market, adding 1,500 motels and increasing its gross room revenues by $1.7 billion. Prior to this acquisition, Oyo operated around 320 hotels across 35 states in the United States.
Apart from the motel chains, Oyo aims to add roughly 250 additional hotels in 2024. "This acquisition is a significant milestone for a startup company like us to strengthen our international presence," said Gautam Swaroop, chief executive officer, Oyo International, adding that the motels will continue to be operated under a separate entity.
In fiscal 2024, Oyo reported its first-ever profit after tax, coming in at Rs 229 crore. It made the profit due to a reduction in general and administrative spend and optimisation of marketing spends, as costs decreased 13% to Rs 4,500 crore from Rs 5,207 crore, despite revenue remaining flat over the previous year.
(With inputs from PTI)
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