Hospitality startup Oyo has achieved an important milestone before the IPO (OYO IPO). This company has been successful in earning profit (OYO Profit) for the first time. Oyo achieved this feat in the March 2023 quarter. This also becomes important because Oyo is preparing to bring IPO soon.
So much profit in March quarter
According to reports, Oyo made a profit of Rs 90 crore in the last quarter of the last financial year i.e. 2022-23. The company’s founder Ritesh Agarwal informed the employees about this in an internal townhall. He told the employees that OYO closed the March quarter with a surplus cashflow of Rs 90 crore.
Oyo got help from these factors
Aggarwal told in the townhall that OYO has been able to make profits due to the increase in bookings in almost all the markets. Especially in Europe, there has been a significant increase in bookings. This boom is not only for the peak season, but also for the off-season from November to March, good bookings are being received in advance. This has helped the company to make profits for the first time.
hope to continue
The Oyo founder expects that the process of earning profits will continue during the first quarter of the current financial year i.e. April-June 2023. Right now the company has Rs 2,700 crore cash as per the balance sheet. The company plans to add 1,800 hotels in the premium category this year.
This is why the update is special
Let us tell you that Oyo is preparing to enter the stock market. However, the company has postponed its IPO for some time in view of the adverse market conditions. However, the profit made in the March quarter can prove to be good for Oyo IPO. This becomes important because most of the new age companies are struggling to make profits. Recently, the poor performance of IPOs of many new companies listed in the market is being linked to their not earning profits.
