Awfis Shares Jump 9% After Strong Q4 Results

The shares of coworking startup Awfis jumped nearly 9% to touch INR 543.70 during Thursday’s (June 20) trading session after it turned profitable in the March quarter (Q4) of the financial year 2023-24 (FY24).

Awfis shares were trading at INR 523.05 at 1:00 PM on Thursday, as compared to its previous close at INR 499.

The recently-listed startup posted a consolidated net profit of INR 1.4 Cr in Q4 on the back of significant improvements across business verticals. Awfis’ operating revenue also jumped over 45% year-on-year (YoY) to INR 232.3 Cr in Q4 FY24.

It had posted a net loss of INR 13.8 Cr in the corresponding quarter of the previous fiscal on an operating revenue of INR 160 Cr.

Founded in 2015 by Amit Ramani, Awfis has evolved over the years from being a coworking network to a tech-enabled workspace solutions platform, catering to enterprises, freelancers, startups and SMEs. 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.

In an interaction with Inc42 ahead of its IPO launch, Awfis chairman and MD Amit Ramani said that around 65% of the firm’s business comes from corporates, 22-23% from SMEs and mid-corporates, and about 10% from startups.

He said that Bengaluru and Mumbai are the top two cities in terms of revenue contribution for the company, followed by Hyderabad, Pune, and Delhi NCR. Meanwhile, about 10% of Awfis’ business comes from the Tier 2 cities.

This was the first earnings announcement by the startup after its listing on the Indian bourses.
Awfis made its debut on the BSE at a premium of 12.8% to the issue price last month.

On BSE, the company’s share price opened at INR 432.25 per share, 12.8% higher than the issue price of INR 383. Similarly on the NSE, the startup’s shares opened at INR 435 apiece, 13.5 % higher than the issue price.

The coworking startup filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December last year and received the nod from market regulator earlier this year.