WeWork India Q2 Results: Revenue, margins expand; Stock near IPO price

Shares of WeWork India Ltd. have gained as much as 2% on Monday, November 10, after the announcement of its September quarter results.

The company's profitability figure appears skewed as the company's base quarter had a tax credit of over ₹230 crore.

Aside of the profit, revenue for the quarter increased by 22% from the same quarter last year to ₹585 crore from ₹481 crore last year. Revenue growth for the quarter was driven by robust enterprise demand and high occupancy across its national portfolio.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 26% from last year to ₹390 crore from ₹310 crore last year.

EBITDA margin for the quarter increased by over 200 basis points to 66.7% from 64.4% during the year-ago quarter.

Profit before tax for the company stood at ₹6.2 crore, compared to a net loss of ₹31.4 crore last year.

At the end of the quarter, the company's operating portfolio stood at 7.7 million square feet across 70 centres in eight cities, with an AUM of 10 million square feet. The company has 1.15 lakh desks under management with 80.2% occupancy.

Renewal rate for the quarter stood at 78%, while average membership tenure increased by 17% from last year to 27 months.

Shares of WeWork India are trading 1.9% higher after the results announcement at ₹644.3. The stock remains around its IPO price of ₹648.