7.7 C
London
Monday, November 28, 2022

Here’s How OYO Became Profitable At The Operational Level In Q1FY23, Jefferies Reveals

Must read

The 28 best early Cyber ​​Monday 2022 deals under $50

With all the deals, discounts and promotions going around, it can be very tempting to spend a coin during Black Friday and Cyber ​​Monday....

The App Store’s Top Scanner app is over 80% off today only

Opinions expressed by londonbusinessblog.com contributors are their own. As hybrid and remote working become entrenched across the globe, entrepreneurs must prepare for the digital workplace....

Taryn Hatcher- Wiki, age, height, net worth, boyfriend, ethnicity

Taryn Hatcher is a well-known sportswriter in the United States. Hatcher is known for his work as a sports anchor for NBC News...

Lawyers see crypto regulation coming in 2023 as industry needs to restore confidence • londonbusinessblog.com

Despite an uneven years in the crypto markets, many market participants are unperturbed about the long-term health of the sector, saying legal frameworks could...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

As a catering major oh yo plans for its IPO (IPO), financial service provider Jefferies says that while the company had one of its strongest first quarters in many years, there are some challenges it must address to maintain growth momentum.



According to the report, the two main factors that have helped OYO improve the unit economy as EBITDA turned positive (adjusted) in the first quarter of FY23, the company’s broad improvement in travel trends and corporate restructuring.

While OYO faces stiff competition from traditional hotel companies, short-term vacation rental companies, other online travel agencies (including Super apps hosting peer OTAs) and competition from search engines in attracting, engaging and retaining customers on the platform, the Covid-induced downturn gave OYO an opportunity to rethink the scale, size and cost of operations and shifted its focus to refine of the hotel footprint by increasing profits per hotel according to Jefferies.

Sales show steady momentum across all segments in Q1FY23.

“OYO’s ability to provide customers with access to a wide range of high-quality storefronts at an attractive price, coupled with brand strength and attractive loyalty and referral programs, drive organic and repeat demand for storefront bookings, resulted in a higher gross booking value (GBV ) for the company,” the report quotes.

Gross booking value (GBV) per hotel per month recovered modestly in FY22 and jumped sharply in 1QFY23 from the low in FY21. The report also emphasized that the number and variety of store windows is a measure of the breadth and reach of the platform and is an important value proposition for customers.

Therefore, growing customer base and global store footprint will be critical to the organization. It will also need to maintain a focus on increasing gross booking value (GBV) per window – organically, including from various loyalty programs to drive new customer bookings and drive growth.

The report also referenced OYO’s asset-light, technology-driven business model that has enabled it to scale business globally and give it a competitive advantage in the short-stay space, in addition to accelerating technology/product development and adoption to reduce operating costs. Reduce. costs and repositioning its offer.

OYO’s adjusted gross margin improved from 9.7 percent in FY20 to 33.2 percent in FY21 and 40-41 percent in FY22/1QFY23. In FY22, Adjusted EBITDA losses decreased to Rs 4.7 billion from Rs 17.5 billion losses in FY21, and the company turned profitable on EBITDA (Adjusted) in 1QFY23. In addition, the company’s Contribution earnings improved from 5.1 percent in FY20 to 22-23 percent in FY22 and 1QFY23.

OYO personnel costs decreased 63 percent year-over-year in FY21 (growth 7 percent year-over-year in FY22), thanks to employee rationalization, centralization of key functions in strategy, better revenue management, relocation of company support teams from country level to regional level, rationalization of non-core activities and increased automation led to operational efficiencies.

However, the report also pointed out that OYO is currently targeting India, Indonesia, Malaysia and Europe because they are more mature in terms of store footprint size and unit economy. These markets together account for 90 percent of storefronts worldwide.

ALSO SEE:
NHAI InvIT raises ₹1,430 crore through follow-up issue
Rupee opens at 8:30 a.m., trades in a narrow range against the US dollar as trade opens

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

The 28 best early Cyber ​​Monday 2022 deals under $50

With all the deals, discounts and promotions going around, it can be very tempting to spend a coin during Black Friday and Cyber ​​Monday....

The App Store’s Top Scanner app is over 80% off today only

Opinions expressed by londonbusinessblog.com contributors are their own. As hybrid and remote working become entrenched across the globe, entrepreneurs must prepare for the digital workplace....

Taryn Hatcher- Wiki, age, height, net worth, boyfriend, ethnicity

Taryn Hatcher is a well-known sportswriter in the United States. Hatcher is known for his work as a sports anchor for NBC News...

Lawyers see crypto regulation coming in 2023 as industry needs to restore confidence • londonbusinessblog.com

Despite an uneven years in the crypto markets, many market participants are unperturbed about the long-term health of the sector, saying legal frameworks could...

Today I learned that LG makes a space-saving cabinet monitor

Desk space is quite limited when you work in a cubicle, but LG's 27-inch Libero monitor could help you free up some more space....