Awfis Turns Profitable In Q4 With INR 1.4 Cr PAT, Operating Revenue Jumps 45% YoY

Coworking startup Awfis turned profitable in the March quarter (Q4) of the financial year 2023-24 (FY24), posting a consolidated net profit of INR 1.4 Cr on the back of significant improvements across business verticals.

The recently-listed startup 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.

Awfis’ operating revenue also jumped over 45% year-on-year (YoY) to INR 232.3 Cr in Q4 FY24.

The startup’s revenue from coworking space on rent and allied services (which includes services like food and beverage, IT services, and meeting room) stood at INR 167.8 Cr in the reported quarter as against INR 132 Cr in Q4 FY23.

Revenue from construction and fit-out projects, called Awfis Transform, jumped over 150% YoY to INR 57.6 Cr in Q4 FY24.

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.

The company also earns from facility management services, called Awfis Care, and other services, such as income from sale of furniture and work-from-home solutions. The revenue from its other operations jumped almost 41% YoY to INR 6.9 Cr in Q4 FY24.

Awfis’ total revenue stood at INR 241.1 Cr in the reported quarter as against INR 164.8 Cr in Q4 FY23.

Though the startup turned profitable in the last quarter of FY24, it continued to incur losses in the full year. However, its FY24 net loss narrowed over 62% to INR 17.6 Cr from INR 46.6 Cr in FY23.

Awfis’ operating revenue jumped 55.6% YoY to INR 848.8 Cr in FY24.

Awfis, which has been EBITDA profitable since 2021, said in its earnings presentation that its EBITDA stood at INR 271 Cr in FY24.

Zooming Into Expenses

The coworking startup’s total expenses jumped 55.6% to INR 239.7 Cr in Q4 FY24 from INR 178.7 Cr in the year-ago period.

Sub-Contracting Cost: The startup spent INR 46.6 Cr in this bucket in the quarter, which was an increase of 144% YoY.

Depreciation and Amortisation Expense: Its spending in this bucket rose about 11% YoY to INR 50.7 Cr in Q4 FY24.

Employee Cost: Awfis’ employee benefits expenses jumped 41% to INR 36.4 Cr in Q4 FY24 from INR 25.8 Cr in the previous year’s quarter.

Overall, in the entire FY24, Awfis’ total expenses grew 45.7% YoY to INR 892.4 Cr.

It must be noted that 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. Currently, its shares are trading at INR 499.9, up 15.6% from the listing price of INR 432.25.

Ahead of the earnings announcement on Wednesday (June 19), the stock ended 2.9% higher at INR 499.9 on the BSE.