According to recent reports, OYO’s adjusted EBITDA for Q2 grew eight times from ₹7 crores in Q1 to ₹56 crores, primarily driven by a 23 percent monthly rise in gross booking value per hotel during Q2 to around ₹4 lakhs. Read the entire article to learn more about this news piece.
More about its EBITDA
EBITDA stands for Earnings before Interest, Taxes, Depreciation, and Amortization. Recent reports suggest that as the company shared its financials with SEBI, it was revealed that though there is an increase in the EBITDA, it isn’t enough to make the company profitable. The company also suffered a loss of 333 crore rupees although that is less than the 414 crore loss that it suffered in the first quarter of the financial year. The GBV per hotel per month plays a major role in enhancing the performance of the company. The hospitality business is being severely affected by high inflation. The is a worldwide economic meltdown due to which businesses in various fields especially hospitality have not been able to make heavy profits and are suffering from severe losses.
As per a source close to the company, “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 favor currently.”
About OYO
For people who do not know much about OYO, this article will give you all the information about the company. OYO is a global platform that provides a space for all the small businesses in the hospitality industry, that is all big and small hotels to get credibility and recognition by putting themselves on the platforms. It provides the technology for these hotels to be seen and thereby helps them grow and improve their business. It is a blessing for people who travel as well, as they can use the app to book affordable rooms from trusted hotels no matter where they are. The company makes the lives of the people and the hotel owners easy and convenient by giving them what they want.