Annual Report Summary
Steady Recovery, Profitable Scale & Sustainable Growth
The document is the 2023-24 Annual Report of Oravel Stays Limited (OYO).
Corporate Information:
- Board of Directors: Includes Ritesh Agarwal (Founder, Chairman & Non-Executive Director), Aditya Ghosh, Bejul Somaia, Dr. Deepa Malik, Troy Alstead, William Steve Albrecht, and Sumer Juneja.
- Management: Abhinav Sinha (Manager), Rakesh Kumar (Group Chief Financial Officer), and Rakesh Kumar Prusti (Group General Counsel).
- Statutory Auditors: S.R. Batliboi & Associates LLP.
- Bankers: A list of 10 bankers, including Axis Bank Limited, Citibank N.A., HDFC Bank Limited, ICICI Bank Limited, JP Morgan, Kotak Mahindra Bank Limited, Mizuho Bank Limited, Yes Bank Limited, IDFC First Bank, and HSBC Bank.
- Corporate Identification Number: U63090GJ2012PLC107088
- Registered Office: Ahmedabad, Gujarat, India.
- Corporate Office: Gurugram, Haryana, India.
- Registrars & Share Transfer Agent: Link Intime India Private Limited, Mumbai, Maharashtra, India.
- Website & Email: www.oyorooms.com, www.oyoreach.com, investors@oyorooms.com, secretarial@oyorooms.com.
Board's Report & Financial Highlights:
- The report presents the 13th report of Oravel Stays Limited, including audited financial statements for the year ended March 31, 2024.
- Highlights of the standalone and consolidated financials:
- Revenue: Standalone revenue increased from INR 254.47 million to INR 208.89 million. Consolidated revenue remained stable at INR 53,887.89 million, compared to INR 54,639.45 million in 2022-23.
- Costs: Total costs increased to INR 399.65 million from INR 1,780.65 million in standalone, and decreased in consolidated from INR 52,074.44 million to INR 45,009.75 million.
- EBITDA: Improved significantly from INR (1,526.18) million to INR (190.76) million in standalone, and from INR 2,565.01 million to INR 8,878.14 million in consolidated.
- Profit/Loss: Net loss significantly reduced in standalone and turned into profit in consolidated to INR 2,295.79 million in FY24 from a net loss of INR (12,865.18) million in FY23.
- Adjusted EBITDA: Reconciled from EBITDA to Adjusted EBITA for consolidated financial, with Adjusted EBITDA increasing from INR 2,777.42 million in FY23 to INR 8,772.03 million in FY24.
State of Company's Affairs, Expansion, and Future Prospects:
- OYO operates a technology platform aiming to empower small hotel entrepreneurs.
- Since 2012, the company has focused on reshaping the short-stay accommodation space through a two-sided platform addressing needs of patrons and customers.
- Business model helps Patrons transform unbranded properties into digitally enabled storefronts, increasing revenue potential.
- FY24 was a turnaround year with OYO achieving eight consecutive EBITDA positive quarters and turning PAT positive for the entire fiscal year, clocking a profit of INR 2,292.6 million.
- Consolidated adjusted EBITDA improved by ~316% to INR 8,772.03 million in FY24.
- Emphasis on improving quality storefronts via programs like Super OYO and the launch of premium hotels brand Palette.
- Adjusted Gross Profit margin remained strong at 23.6% in FY24 (23.2% in FY23).
- OYO increased inventory to 18,103 hotels as on 31st March 2024, from 12,938 hotels as on 31st March 2023.
- Consolidated revenue from operations remained stable at INR 53,887.89 million.
- Company focused on maintaining sustainable growth and optimizing costs through reductions in general & administrative spend and marketing spends.
- Debt buyback of $195 million led to slashed interest outlay. Company is aiming to refinance the current debt to reduce interest rate from 14% to 10%, leading to annual savings of approximately $15-$17M and extending the repayment date to 2029.
- India continues to be bedrock of its operations, and centralized operations based in India are crucial to the company's strategic initiatives and continued growth worldwide.
- OYO witnessed rise of spiritual tourism in India and capitalized on this by launching properties across major Indian religious destinations.
- Company has also seen growth across Europe, US, Southeast Asia and the Middle East.
- The company has continued to invest in its technological capabilities, most notably employing machine learning for the search and ranking of hotels.
- Company-serviced hotels also emerged as a new focus area for OYO in FY24.
Awards & Recognition:
- Bronze in the Reputation Management category at Economic Times Brand Equity Kaleido Awards 2024.
- Featured in Reputation Today's Top 30 Corporate Communications Teams of India at number 25 in 2024.
- Global SABRE Award for top 25 global Campaigns of the Year.
- Mr. Ritesh Agarwal, founder and CEO of OYO Rooms received RBETA 2024 Entrepreneur of the Year Award.
Other Key Points:
- Dividend: No dividend recommended for FY 2023-24.
- Capital Structure: Details of authorized, issued, subscribed, and paid-up share capital, including changes during FY 2023-24 due to stock option exercises.
- Employee Stock Options: Details provided in Annexure-A to this Report.
- Investor Education and Protection Fund: No transfer of amount to IEPF required.
- Board of Directors and Key Managerial Personnel: Composition and changes during the year, including resignations and appointments of Directors and Key Managerial Personnels. List of Directors with DIN and Category. Board meetings and committee details. Statement by Independent Directors.
- Nomination and Remuneration (NRC) Policy: The Remuneration Policy of the Company is designed to create a high performance culture.
- Particulars of Employees: Provisions of Section 197 (12) of the Companies Act, 2013 do not apply to the Company.
- Director's Responsibility Statement: The Board confirms compliance with Indian Accounting Standards, reasonable accounting policies, and effective internal controls.
- Performance of Subsidiaries, Associates and Joint Ventures: Details in Annexure-C.
- Deposits: No public deposits invited or accepted during FY 2023-24.
- Particulars of Loans, Guarantees, and Investments: As per Section 186 of the Companies Act, 2013, disclosed in financial statements.
- Particulars of Contracts or Arrangements with Related Parties: Follows Corporate Governance standards, with Related Party Transaction Policy in place.
- Disclosure of Policy on Material Subsidiaries: Available on the Company's website.
- Corporate Social Responsibility (CSR): CSR Policy adopted; OYO Group actively engaged in CSR activities with NGOs.
- Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo: Includes details on conservation efforts, technology enhancement, and foreign exchange transactions.
- Risk Management: Risk management framework is in place with mitigation plans.
- Internal Financial Controls: Adequate internal financial controls were tested; no material weakness observed.
- Cost Records: Not required to be maintained.
- Annual Evaluation of the Board: Mechanism adopted for performance evaluation of Directors and Board.
- Vigil Mechanism/Whistle Blower Complaints: Mechanism in place for reporting concerns, with investigations and protection for whistle blowers.
- Significant and Material Orders: No adverse orders impacting going concern status.
- Statutory Auditors and their Report: Re-appointed statutory auditors. No qualifications or adverse remarks in the audit report.
- Secretarial Audit: The Company generally complied with provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
- Internal Auditor: Mr. Niraj Kumar is the Internal Auditor of the Company to oversee and carry out an internal.
- Annual Return: Available on the Company website.
- Compliance with Secretarial Standards: Complied with applicable standards.
- Prevention of Insider Trading: Code of Conduct in place.
- Statutory Disclosures: No transactions requiring specific disclosures.
- Corporate Governance: Strives for high standards of governance, transparency, accountability, and integrity.
- Disclosures under Sexual Harassment Act: Policy and ICC in place. One complaint reported and closed during the year.
- Acknowledgements: Appreciation expressed to stakeholders and staff.
Annexure A - Details Pertaining to Employees' Stock Option Scheme:
- Provides information regarding options granted, vested, exercised, and lapsed, as well as details on exercise price and money realized.
Annexure B - Details Pertaining to Shares Held by Trustee of Oravel Employee Welfare Trust:
- Information on shares held by the trustee, voting rights, resolutions, and percentages.
Annexure C - Particulars of Subsidiary and Joint Venture Companies:
- Lists names, addresses, CIN/GLN, holding percentages, and applicable sections. Notes changes in subsidiaries and joint ventures during year.
Annexure D - Statement Containing the Salient Features of Financial Statements of Subsidiaries:
- Provides a structured summary of financial data (INR Million) for various Indian and foreign subsidiaries, including:
- Country & Currency
- Name of the Subsidiary
- Financial results for the financial years 2023-2024 and 2022-2023 (Revenue, expenses, profit, and loss)
Annexure E - Particulars of Contracts or Arrangements with Related Parties:
- Details related party transactions, includes type of contracts, amounts of contacts, and terms.
- www.oyorooms.com
Annexure F - Details Under Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013
- Committee in place to comply with regulation.
Annexure G - Secretarial Audit Report:
*In the opinion of the Board, Independent Directors fulfil the conditions specified in the Act, Rules made thereunder.
*The report is to be read with our letter of even date which is annexed as Annexure-A to this report and forms an integral part of this report.
