OYO Hotels and Homes Founder and CEO (Global) Ritesh Agarwal
OYO Hotels and Homes Founder and CEO (Global) Ritesh Agarwal
File pic

Hospitality firm OYO Hotels & Homes reported widening of its consolidated net loss to $335 million (over Rs 2,390 crore) for the financial year ended March 2019, mainly on account of international expansion during the period.

The company had reported a net loss of $52 million (over Rs 370 crore) for the previous financial year, OYO said.

Its consolidated revenue for 2018-19 stood at $951 million (over Rs 6,785 crore) as against $211 million (over Rs 1,500 crore) in the year-ago fiscal, it added.

"The inherent costs of establishing new markets, including those related to talent, market-entry, operational expenses, among others, resulted in an increase in OYO's net loss percentage in the near term, which grew from 25% in 2017-18 to 35% of revenue in 2018-19, to $335 million," the company said.

At the same time, in mature markets like India, the company reduced its losses from 24% to 14% of revenue in 2018-19 to $83 million, it added.

The business operations in India, a mature market for the company, contributed nearly 63.5% or $604 million to the total revenue as the business clocked a 2.9 times growth y-o-y in the home market, OYO said.

Nearly 36.5% or $348 million was contributed by the company's operations outside India, primarily China, signifying its strong commitment towards building a sustainable global business at scale with improved operating efficiencies, it added.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal