WeWork India's Q2 revenue jumps 22% YoY to ₹585cr
What's the story
WeWork India has reported a 22% increase in its revenue for the September quarter, amounting to ₹585 crore. This is up from ₹481 crore in the same period last year. The growth was primarily driven by strong enterprise demand and high occupancy rates across its nationwide portfolio. The company's EBITDA also saw a 26% rise, reaching ₹390 crore from last year's ₹310 crore.
Financial performance
EBITDA margin improves
WeWork India's EBITDA margin for the quarter improved by over 200 basis points to 66.7% from last year's 64.4%. The company's profit before tax stood at ₹6.2 crore, a significant turnaround from last year's net loss of ₹31.4 crore. However, it's worth noting that this profitability figure may be skewed due to a tax credit of over ₹230 crore in the base quarter.
Business expansion
Key operational metrics for the quarter
By the end of the quarter, WeWork India had an operating portfolio of 7.7 million square feet across 70 centers in eight cities, with an AUM of 10 million square feet. The company managed 1.15 lakh desks with an occupancy rate of 80.2%. The renewal rate for the quarter stood at a healthy 78%, while the average membership tenure increased by a whopping 17% from last year to reach 27 months.
Market reaction
WeWork India shares rise
Following the announcement of its Q2 results, WeWork India's shares witnessed a slight increase, trading at ₹644.3. The stock is currently trading near its IPO price of ₹648.