Awfis Reports Strong Q4 and FY24 Financial Results

Awfis Space Solutions Limited (Awfis) a leading flexible workspace solutions company, has released its audited financial results for the quarter and full year ended 31st March 2024.

Highlights for the Quarter ended March 31, 2024:

• Q4FY24 reported strong Operating Revenue of Rs. 232 crores, a growth of 45% y - o - y 

• In Q4FY24, PBT has turned positive at Rs. 1.4 crores vs loss of Rs. 14 crores in Q4FY23 

• Q4FY24 Cash EBIT stood at Rs. 30 crores vs Rs. 12 crores in Q4FY23, a growth of 150%

• Q4FY24 ROCE on annualised basis at 53% 

On Ind AS 116 Adjusted basis: 

• EBITDA improved to 11.7% in Q4FY24 against 3.2% in Q4FY23 on the back of strong revenue growth and operating efficiencies

• PBT has turned positive at Rs. 1.4 crores vs loss of Rs. 14 crores in Q4FY23. PBT margins improved to 3.3% in Q4FY24 against (8.5)% in Q4FY23

Highlights for full year ended March 31, 2024

• FY24 reported strong Operating Revenue of Rs. 849 crores, a growth of 56% y - o - y 

• PBT for FY24 has shown improvement from Rs. (47) crores in FY23 to Rs. (18) crores in FY24 

• FY24 Cash EBIT stood at Rs. 97 crores vs Rs. 36 crores in FY23, a growth of 168% 

• FY24 ROCE at 43% against 25% in FY23

On Ind AS 116 Adjusted basis:

• EBITDA improved to 10.4% in FY24 against 4.3% in FY23 on the back of strong revenue growth and operating efficiencies 

• PBT margin improved to 2.3% in FY24 against (3.9)% in FY23

OPERATIONAL HIGHLIGHTS:

*Two centers with 663 seats closed in FY24

^LOI refers to Letters of Intent signed with space owners

Expansion:

• Overall, Operational Centres and Seats grew by 35% and 39% respectively from FY23 to FY24

• Expanded to 8 Tier 2 cities

Clients and Churn:

• 36,857 new seats sold in FY24, with 8,923 seats sold in Q4 FY24

• Marquee customer base of 2,459 unique clients 

• Low Avg. Monthly Net Churn rate of 1.2% for FY24

• Exit Month Occupancy for FY24 stood at 71%

Managed Aggregation Model:

• MA Model agreements are structured on profit or revenue sharing model making it risk averse. Fit-outs capital is largely borne by the space owner, making it capital light 

• 66% seats in MA model driving capital efficiencies for the business

Center Openings - Q4FY24

• 22 new centers launched

• 15,084 new seats added 

• 73% centers and 69% seats in MA model

Center Openings - FY24 

• 43 new centers launched 

• 27,490 new seats added 

• 79% centers and seats in MA model 

• 86% of supply addition in Tier 1 cities

CONSOLIDATED FINANCIAL HIGHLIGHTS:

* Cash EBIT is EBITDA minus actual lease payments during the period 

+ Ebitda and Ebitda Margin includes other income

Commenting on the Performance, Mr. Amit Ramani, Chairman and Managing Director, said:

“On 30th May, 2024, Awfis Space Solutions made its debut on NSE and BSE. We are proud that within 9 years of operations, we have been able to create the largest flexible co-working company in India and the first one to go public in the Flexible Space industry.

We are pleased to report our Q4 FY24 performance and some key metrics:

• We are the largest operator in India with 181 centers, ~1.1 lakh seats and ~5.6 Mn sq.ft. Chargeable area*

• Our Revenue from operations grew at 45% YoY

• Our EBITDA+ grew at 43% YoY and the margin stood at 31.5%

• We are PAT positive in this quarter

• Average occupancy stood at 71% overall, and 84% for >12 months vintage centers

• Our Managed aggregation supply portfolio remained strong at 66% of seats under this model

• Annualized ROCE for the quarter stood at 53%#

One of our key strategies and differentiators is an asset-light, low risk Managed Aggregation supply model. This model works on a revenue/profit share partnership with space owners instead of straight lease, reducing our fixed rental obligations and capital expenditure.

We strongly believe the co-working industry is at an interesting junction. With increased investments in India by MNCs, continuous growth of the Large Corporate, SME and start up ecosystem we are confident to strengthen our leadership position in the Flexible workspace segment in India.”