The allegations come after Oyo filed an addendum to its earlier submitted draft red herring prospectus to market regulator SEBI.
Former Infosys director and CFO TV Mohandas Pai on Monday claimed that global hospitality services platform Oyo was misleading investors with fake accounting. Padma Shri Awardee Mohandas Pai, who is currently Chairman of Manipal Global Education, was replying to a Twitter post noting that Oyo had claimed “(adjusted) EBITDA -level profitability of Rs 10.6 crore for the June quarter”.
“This is fake accounting!,” wrote the former Infosys director, going on to add, “There is nothing like an adjusted ebidta. They are trying to mislead Investors by such fake accounting. Regulators and stock exchanges should stop such misreporting in India.”
The claim comes after Oyo filed an addendum to its earlier submitted draft red herring prospectus to market regulator Securities and Exchange Board of India on Monday. Oyo reported its maiden positive EBITDA during the first quarter of the current fiscal.
Oyo’s Group Chief Financial Officer (CFO) replied to the claim by Mohandas Pai saying that the EBITDA is “clearly reported” and that the “Global non-GAAP metrics are defined transparently”.
“EBITDA is clearly reported & is higher Rs 10.57cr for Q1FY23 than Adj EBITDA of Rs 7.26cr. Details on Pg 3, 4, 12 & 13. Other Income not included in EBITDA & Adj EBITDA. All numbers are from audited signed financial statements. Global non-GAAP metrics are defined transparently,” Gupta replied to Pai in a tweet.
The additional information by Oyo is expected to help investors be well-informed about its public issue and make better decisions. The hospitality industry giant has around 1.68 lakh storefronts across over 35 countries. Its core growth markets are Indonesia, Malaysia and Europe.
Oyo’s adjusted gross profit margin improved from 9.7 percent in fiscal 2020 to 33.2 percent in fiscal 2021 along with approximately 79 percent reduction in its EBITDA losses from fiscal 2020 to 2021 despite the pandemic. The company attributes this to various initiatives that it took.
Oyo reported its maiden positive EBITDA during the first quarter of the current fiscal, which is said is driven by an increase in the overall Gross Booking Value (GBV). It has improved the company’s per unit business economics.
Oyo’s EBITDA during the quarter was Rs 7 crore (USD 1 million) while its EBITDA margins rose to 0.5 per cent in Q1 2022-23 from (-) 44 per cent in 2021 and (-) 9.9 per cent in 2022, ANI reported.
The monthly gross bookings value per hotel has grown 47 percent in Q1 FY23 to Rs 3.25 lakh as against Rs 2.21 lakh for fiscal 2022.
READ | Oyo trying to mislead investors with fake accounting, says ex-Infosys CFO TV Mohandas Pai
(With inputs from ANI)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Oyo trying to mislead investors with fake accounting, says ex-Infosys CFO TV Mohandas Pai")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}