Mohandas Pai slams OYO over ‘fake accounting’, hospitality major replies

Former Infosys Director T.V. Mohandas Pai slammed Ritesh Agarwal-run Oyo for allegedly misleading investors through ‘fake accounting‘ because the hospitality main reported its maiden positive EBITDA in the course of the first quarter of the present fiscal.

Softbank-backed Oyo claimed (adjusted) EBITDA-level profitability of Rs 10.6 crore for the June quarter.

In a tweet, Pai who’s at present Chairman of Manipal International Training (Manipal College), stated: “That is pretend accounting! There’s nothing like an adjusted ebitda. They’re attempting to mislead traders by such pretend accounting. Regulators and inventory exchanges ought to cease such misreporting in india.”

The allegations got here after Oyo filed an addendum to its earlier submitted draft purple herring prospectus (DRHP), filed in October 2021 for its IPO, to the Securities and Trade Board of India (SEBI).

The corporate is now eyeing early 2023 for its IPO amid risky international market circumstances.

Abhishek Gupta, Oyo’s Group Chief Monetary Officer (CFO), replied to Pai, saying that the EBITDA is “clearly reported”.

“EBITDA is clearly reported & is greater Rs 10.57 cr for Q1FY23 than Adj EBITDA of Rs 7.26 cr. Different Earnings not included in EBITDA & Adj EBITDA. All numbers are from audited signed monetary statements. International non-GAAP metrics are outlined transparently,” Gupta tweeted.

The corporate stated the income for FY22 was Rs 4,905 crore, a progress of 18 per cent from Rs 4,157.3 crore reported in FY21.

Oyo managed to halve its losses for FY22 at Rs 1,892.2, from Rs 3,382.5 crore in FY21.

Month-to-month gross bookings worth per lodge, noticed a 47 per cent progress in Q1 FY23 to Rs 3.25 lakh vs Rs 2.21 lakh for fiscal 22, as journey recovered after the pandemic.

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