Softbank-backed Oyo Hotels and Homes Pvt Ltd, commonly known as OYO, reported its July-September loss narrowing to Rs 333 crore from Rs 414 crore in the previous quarter of the ongoing fiscal.
OYO shared its financials with markets regulator SEBI on Saturday as part of its commitment to update its Draft Red Herring Prospectus with the financial performance till the first half of financial 2022-23.
Earlier, the market regulator had given OYO permission to submit updated financials before it examined and finally processed the company’s application for floating public issue. This will set in motion the process of Sebi approval of the firm’s IPO.
Its adjusted EBITDA for July-September 2022 grew eight times to Rs 56 crore from Rs 7 crore in the first quarter of FY2022-23, primarily driven by a 23 percent monthly rise in gross booking value per hotel during the second quarter to around Rs 4 lakh.
The sharp uptick in EBIDTA wasn’t enough to make the company profitable at a net level. The company logged in a net loss of Rs 333 crore, though it has reduced from the Rs 414 crore reported in the first quarter.
Recently, the Federation of Hotel and Restaurant Associations of India (FHRAI) wrote to Sebi to not allow OYO from floating its IPO. The ground for this request is the penalty that Competition Commission of India (CCI) imposed on the hotel aggregator. In October, the CCI imposed a total penalty of Rs 392 crore on OYO, Goibibo, and Make My Trip. The competition watchdog found these companies guilty on indulging in anti-competitive practices. These practices included making hotels enter into exclusive tie-ups with them.
