The company told staffers in an internal presentation that it ended the quarter with Rs 90 crore of surplus cash flow.
Sources familiar with the matter said the positive cash flow trajectory is expected to continue into the first quarter of FY24. The company’s cash corpus on the balance sheet is Rs 2,700 crore.
Sources said Oyo is attributing the developments to an increase in bookings across all key geographies, especially in the Europe homes business which is seeing advance bookings for both the upcoming peak summer season as well as the relatively off-season period from November to March.
In March, Oyo refiled its Draft Red Herring Prospectus (DRHP) with the stock market regulator SEBI under the pre-filing route.
People close to the company had previously said the issue size has likely been reduced to $400-600 million, consisting entirely of freshly issued shares with all the proceeds going to the company. Oyo plans to repay most of its debt with the proceeds, they had said.
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Oyo had first filed a DRHP with Sebi in September 2021 and was initially aiming to raise Rs 8,430 crore, or more than $1 billion.In December last year, the market regulator asked the company to update the DRHP after Oyo submitted its updated financial results for the first half of fiscal 2022-23 with its maiden adjusted operating profit and said potential investors needed to be made aware of the material uptick in its performance.
Oyo founder Ritesh Agarwal told employees in a town hall last month that the company could post adjusted earnings of nearly Rs 800 crore before interest, tax, depreciation and amortisation in the upcoming financial year 2024.
Adjusted Ebitda, or operating profit, for Oyo excludes transformation expenses made on assets of its hotel partners.
Agarwal had said during the town hall that the company was taking measures to keep a “healthy” cash runaway and was continuing to operate in a “cost effective” way.
“We have a current cash balance of Rs 2,700 crore and we hope we will end up consuming very little of it for existing operations,” he said at the town hall. “Our cash flow has shown improvement and our reliance on external funds has gradually decreased overtime. Teams on the ground have ensured that hotels and home supply acquisition is on track and growing steadily,” he had said last month.
Oyo’s revenue for financial year 2023 is expected to be more than Rs 5,700 crore, up 19% from the Rs 4,780 crore it posted in financial year 2022, according to information shared during the town hall meeting last month.