Awfis Space Solutions Ltd Results

H1FY25 & Q2FY25 Result Announced for Awfis Space Solutions Ltd

Special Consumer Services company Awfis Space Solutions announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Q2FY25 reported strong Operating Revenue of Rs 292 crore, growth of 40% YoY. Operating EBITDA margin for Q2FY25 is 34.3%, improved by 550 bps on YoY basis, on back of strong revenue growth, occupancy improvement, Enterprise clients, Allied services and operating efficiencies. In Q2FY25, reported PAT (excl. Exceptional Items) was Rs 15 crore vs loss of Rs 4 crore in Q2FY24. Q2FY25 Cash EBIT stood at Rs 52 crore vs Rs 24 crore in Q2FY24, a growth of 115%. Exceptional Item includes sale of Facility Management business (“Awfis Care”). H1FY25 Financial Highlights: H1FY25 reported strong Operating Revenue of Rs 550 crore, growth of 39% YoY. Operating EBITDA margin for H1FY25 is 32.6%, improved by 460 bps on YoY basis, on the back of strong revenue growth, occupancy improvement, Enterprise clients, Allied services and operating efficiencies. In H1FY25, reported PAT (excl. Exceptional Items) is Rs 17 crore vs loss of Rs 13 crore in H1FY24. H1FY25 Cash EBIT stood at Rs 90 crore vs Rs 39 crore in H1FY24, a growth of 132%. Exceptional Item includes sale of Facility Management business (“Awfis Care”). Amit Ramani, Chairman and Managing Director, Awfis Space Solutions, said: "We are pleased to report a robust revenue growth of 40% in Q2 FY25 over the previous year, reaching Rs 292 crore. This growth was primarily driven by contributions from newly added seats and increased occupancy at existing centers. Operational EBITDA for the quarter also grew by 67% year-on-year to Rs 100 crore, achieving an EBITDA margin of 34.3%, an improvement of 550 bps from last year. This increase in margins was largely driven by higher revenues, improved occupancy in established centers, the filling of additional seats, all of which contributed to enhanced operating leverage and higher profitability. As of September 2024, we achieved an exit month occupancy rate of 73%, with 84% occupancy in centers with over 12 months of operation, highlighting sustained demand for our flexible workspaces. Our Design & Build business has also seen strong traction supported by a solid order pipeline and favorable market conditions. We have now surpassed 110K operational seats and 180 centers. Including Fit-out and LOI, we have a total of 150K+ seats across 224 centers, covering 7.6 million sq. ft., on track to reach our target of 135K operational seats by March 2025. Responding to the rising demand for flexible workspaces in Tier II cities, we have expanded our footprint in these emerging markets. Most recently, we entered a new tier 2 city - Guwahati, strengthening our commitment to supporting growth in these regions. Since September 2023, our footprint in Tier II cities has grown by 43% since September 2023, increasing from 14 to 20 centers, reinforcing our commitment to these regions. Our asset-light, risk-averse Managed Aggregation (MA) model remains at the core of our strategy, with 67% of seats and 64% of centers aligned under this approach to maximize returns on investment. I’m excited to announce the opening of our first Elite by Awfis Centre at Aurobindo Orbit in Hyderabad’s Hitech City. Awfis Elite sets a new benchmark for luxury in flexible workspaces, combining elegance, functionality, and a focus on sustainability. Designed to inspire creativity and collaboration, it offers more than just a workspace, it provides an environment where professionals can excel in both comfort and style. Our commitment to innovation and client-centric solutions positions us strongly for success in the evolving commercial real estate market.“