IPO-Bound Oyo Turns Cash Flow Positive In Q4 FY23, Marks First Profitable Year

Oyo has reportedly told its employees in a Thursday (27 April) town hall that it achieved cash flow positivity in Q4 FY23.

The company announced Rs 90 crore surplus cash flow at the end of the quarter during an internal presentation to staff.

With this, the IPO-bound company was now on track to end FY23 with adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of around Rs 245 crore in FY23, making it Oyo’s first profitable year since its inception around 2013.

According to sources cited in a Economic Times report, Oyo's positive cash flow trajectory is expected to continue into the first quarter of FY24.

Oyo, which in March refiled its Draft Red Herring Prospectus (DRHP) with the stock market regulator SEBI under the pre-filing route, currently has Rs 2,700 crore in its cash reserve.

The company is reportedly attributing the developments to an increase in bookings across all crucial regions, particularly in Europe home business.

The European home business of the company is seeing advance bookings for both the upcoming busy summer season and the relatively off-season period between November and March.

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.

The company has reportedly reduced the size of fresh IPO to $400-600 million.

Oyo plans to repay most of its debt with the proceeds, according to the sources cited in the ET report.