Awfis Posts INR 38.67 Cr Profit In Q2, Revenue Up 40% YoY

Coworking space startup Awfis posted a consolidated net profit of INR 38.67 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) as against a net loss of INR 4.34 Cr in the year-ago period, on the back of healthy growth in its business.

On a quarter-on-quarter basis, net profit increased multifold from INR 2.78 Cr.

It is pertinent to note that Awfis booked an exceptional gain of INR 24.01 Cr during the quarter under review due to the sale of its facility management division Awfis Care to SMS Integrated Facility Services.

Without this exceptional item, the company would have reported a profit of INR 14.66 Cr.

Awfis’ operating revenue jumped 40.46% to INR 292.38 Cr during the quarter under review from INR 208.15 Cr in the year-ago period. Sequentially, it rose 13.43% from INR 257.74 Cr.

Including other income of INR 9.56 Cr, total revenue grew over 40% to INR 301.95 Cr in the quarter ended September 30, 2024 from INR 215.20 Cr in the corresponding quarter last year.

Founded in 2015 by Amit Ramani, Awfis claims to be the largest flexible space operator in India with 181 centres, around 1.1 Lakh seats, and about 5.6 Mn square feet of chargeable area, as of March 31, 2024.

While the startup started as a coworking network, it has since diversified into a tech-enabled workspace solutions platform, catering to enterprises, freelancers, startups and SMEs.

Segment Revenue

Coworking space on rent and allied services contributed INR 218.31 Cr to Awfis’ operating revenue in the quarter ended September 2024, up 43.09% from INR 152.56 Cr in the year-ago period and 18% from INR 185 Cr in the previous June quarter.

The startup generated a revenue of INR 68.15 Cr from its construction and fit-out projects vertical in Q2 FY25, an increase of 36.38% from INR 49.97 Cr in the same quarter last year.

Zooming Into Expenses

Awfis’ total expenditure increased 30.85% to INR 287.29 Cr in the September quarter from INR 219.55 Cr in the year-ago period. 

Sub-Contracting Cost: The company’s spending under this head increased 30.80% to INR 56.13 Cr during the quarter under review from INR 42.91 Cr in Q2 FY24.

Employee Benefit Expenses: Awfis incurred INR 39.38 Cr on employee costs in the September quarter of the ongoing financial year, an increase of 16.75% from INR 33.73 Cr in the same quarter last year.

Finance Cost: Spending in this bracket zoomed 32.28% to INR 30.40 Cr in Q2 FY25 from INR 22.98 Cr in the year-ago period.

This comes at a time when the coworking space provider is on an expansion spree. Awfis recently announced the launch of two new centres at Bengaluru, and plans to set up an additional 3 Lakh square feet of Grade-A workspace in Pune.

It plans to add about 40,000 seats this year. Ahead of the company’s earnings announcement, shares of Awfis ended 2.2% lower at INR 775.70 apiece on the BSE.