OYO CEO Ritesh Agarwal’s FY22 pay up 350% to ₹5.6 cr

Ritesh Agarwal, the founder and CEO of OYO Hotels & Homes, received remuneration worth ₹5.6 crore for the financial year 2021-22, up about 350% from the previous fiscal year, shows the latest revised draft red herring prospectus (DRHP) filed by OYO Hotels' parent company Oravel Stays Ltd. with market regulator SEBI.

Agarwal's remuneration saw a massive rise in FY22 from FY 2020-21 when he drew total annual compensation worth ₹ 1.6 crore. A year before that, he took home ₹21.5 lakh.

The significant rise in Agarwal's pay in FY22 came at a time when the company resorted to cuts across salary & bonus, marketing and other expenses to curb losses.

Abhishek Gupta, OYO group chief financial officer, took home total remuneration worth ₹3.9 crore during FY22, down from ₹7.1 crore he received during FY21. He had received total compensation worth ₹8.7 crore during FY20.

The SEBI filing shows Employee Stock Option (ESOP) costs also rose for the company. During the year ended March 31, 2022, the OYO group incurred ₹9.2 crore on account of repricing of ESOPS. For FY22, the holding company incurred ₹165.2 crore on account of these ESOPs, shows the filing.

OYO today filed a revised draft red herring prospectus (DRHP) with market regulator SEBI after it had filed initial papers to raise about $1.1 billion in 2021. The plan was shelved amid a global downturn and the failure of a majority of new-age tech IPOs to impress investors.

The issue at that time comprised a fresh issue of equity shares aggregating up to ₹7,000 crore and an offer for sale (OFS) of ₹1,430 crore. OYO's early backer SoftBank Group Corp holds a 47% stake in the company, while about one-third of the company is owned by founder Ritesh Agarwal.

Now OYO is working towards a public issue in the year 2023. The revised DRHP includes the consolidated financial information for the financial years ended March 31, 2021, March 31, 2020, and March 31, 2019, along with certain non-GAAP financial measures and key performance indicators.

The financials of the hotel aggregator, disclosed in the IPO filing addendum, show a reduction in losses for FY22 from FY21 and Q1 FY23.

Its revenue from contracts with customers was ₹3,961.6 crore in FY 2021, which increased by 20.7% to ₹4,781.3 crore in fiscal 2022.

OYO's expenses for fiscal 2020, fiscal 2021, fiscal 2022 and the three-month period ended June 30, 2022, were ₹22,800 crore, ₹6,937 crore, ₹6,984 crore and ₹1,910 crore, respectively, showing a consistent decline. The employee benefits expense also shows a decline from ₹47.6 crore in FY20 to ₹17.4 crore in FY21 but a marginal rise in FY22 at ₹18 crore.