WeWork India H1 net profit rises 150%, revenue up 30.1% - The

Net profit margin improved 388 basis points to 8.1%.In the second quarter, net profit increased 67.4% year-on-year to Rs 65.8 crore, while revenue rose 31.6% to Rs 768.7 crore. Operating profit grew 37.6% to Rs 162.9 crore, with margins expanding 92 basis points to 21.2%.The company added 18,400 desks during the first half, its largest-ever half-year capacity addition. Of these, 11,700 desks were added in the second quarter, taking operational capacity to 145,300 desks, up 26.9% year-on-year.

A further 4,500 desks became operational in the first week of October.WeWork India’s member base grew 32.5% year-on-year to 121,700 in the second quarter, after adding 8,300 members during the period. Over the past 12 months, the company added 29,800 members against capacity additions of 30,800 desks, with member additions equivalent to 97% of the desks added.Free cash flow from operations rose 156.6% year-on-year to Rs 379.8 crore in the first half, enabling the company to fund its capital expenditure through operating cash flows.

In the second quarter, free cash flow from operations increased 149.2% to Rs 237.7 crore, equivalent to 1.5 times operating profit.Return on capital employed improved to 34.5%, while the company moved to a net cash position of Rs 23.1 crore from net debt of Rs 310.5 crore a year earlier. Its cost of borrowing remained at 8.5%.Global capability centres contributed 40.8% of core revenue, while digital products revenue grew 45.6% year-on-year to Rs 29.2 crore in the second quarter.The company’s operational footprint reached 9.8 million sq ft across 85 centres in eight cities, while its total committed footprint, including signed leases and letters of intent, stood at 13 million sq ft. Mature centre occupancy was 87.7%, while overall portfolio occupancy stood at 83.7%.