Skift Take
Take that money, watch it burn? Rating agency Moody's cautioned Oyo that it should instead consider sinking in the river the lessons it's learned about profitability.
Rating agency Moody's Investors Service said it expected India's budget hotel chain Oyo to generate between about $50 million and $55 million in earnings before interest, taxes, depreciation, and amortization — a measure of profit — this fiscal year.
The Moody’s statement comes two months after Oyo Founder and Group CEO Ritesh Agarwal told employees in an internal townhall that the company expects to clock adjusted earnings before interest, taxes, depreciation, and amortization of nearly $97 million in fiscal 2024.
Agarwal also said at the time that Oyo had turned cash flow positive in the fourth quarter of 2023 fiscal year, reporting an earnings before interest, taxes, depreciation and amortization of nearly $30 million, the Economic Times reported.
“It may seem that the Moody’s report has predicted almost half of the nearly $9