YOY quite satisfactory results. But topline could have been better takings into account TEVA.
will have to ask how much is TEVA’s contribution for this quarter.

Q1 FY25-

The business growth was slightly impacted in Q1FY25 due to general elections and plant maintenance shut down by steel producers, which impacted the raw material supply. However, we expect a strong recovery going forward, from Q2FY25.

If you listen to Das (RBI Governor), i don’t think we are in any hurry to do a rate cut. As long as inflation is higher than 4%, there is no reason to cut rates. Even if we hit that target, they would see if it sustains for a quarter or two or more and then think about cutting rates. So if all your eggs are in one basket, you cannot rely on just one trigger (rate cut in your case) to determine future prospects of a company. Bajaj finance was a resounding success because of their timing and understanding of the consumer market.

awfissq1.pdf (5.5 MB)
The Q1 FY25 results for Awfis Space Solutions Limited highlight strong growth and expansion in the Indian flexible workspace industry. Here are the key takeaways:

1. Operational and Expansion Highlights:

• Awfis has surpassed 100,000 operational seats and 169 operational centers as of June 30, 2024.
• The company has a total of 127,726 seats and 208 centers, including those under fit-out and with Letters of Intent (LOIs).
• 10% of new centers are in Tier 2 cities, reflecting a strategic expansion into emerging markets.
• The company added 48 centers and 30,156 seats YoY, with a 43% increase in operational seats and a 40% increase in operational centers.

2. Financial Performance:

• Revenue from operations grew by 37% YoY, reaching ₹258 crores.
• Operating EBITDA grew by 56% YoY, with a margin of 30.7%.
• The company achieved a PAT of ₹3 crores, a significant improvement from a loss of ₹8 crores in Q1 FY24.
• Cash EBIT saw a 158% growth YoY, reaching ₹38 crores.

3. Operational Efficiency:

• Awfis continues to focus on an asset-light Managed Aggregation (MA) model, which now accounts for 67% of total seats and 64% of total centers.
• The company’s exit month occupancy rate was 71%, with 84% occupancy at centers with more than 12 months of operation.
• The annualized Return on Capital Employed (ROCE) for Q1 FY25 was 68%, up from 43% in FY24.

4. Strategic Focus:

• Awfis is prioritizing controlled and methodical expansion with a focus on maximizing efficiency and returns while maintaining a risk-averse approach.
• The company is also enhancing its product and service offerings, particularly through Awfis Transform and Awfis Care, to cater to a wider range of clients.