Awfis Space Solutions CMD Expects Revenue Of NSE Contract To Be Spread Over FY25 And FY26
On Nov. 12, the company had signed an agreement with the NSE to design, build and manage 1,65,000 square feet of office space for the stock exchange.
Awfis Space Solutions Chairman and Managing Director Amit Ramani said that the recently-signed NSE contract will contribute towards the company's revenue this financial year as well as FY2025–26.
Talking to NDTV Profit, Ramani said that the contract was one of the largest that Awfis Space Solutions Ltd. had signed in the managed-office space segment.
On Nov. 12, the company had announced via a press release that it had won a mandate from the NSE to design, build and manage an office space for the stock exchange at the Bandra-Kurla Complex in Mumbai.
According to the agreement, Awfis will provide services for two floors spanning 1.65 lakh square feet at the 10-storey Adani Inspire building in BKC.
Awfis already operates a co-working centre in the building, and with this new deal, it expands its footprint with additional two centres, the press release had stated.
Providing details about the contract, Ramani said that the floors will go live by February, thereby impacting the business’ financials. “The contract is essentially in two phases. The first phase is one floor, and then the next phase is another floor. The first phase goes live somewhere in January, and the second phase goes live somewhere in mid of February.”
“So we'll have some impact in FY25, but a large impact of the contract will come in FY26,” the top executive said.
The contract will be “certainly helping” with the revenue guidance of 30% that the company has given for FY25, Ramani noted.
He said that revenue will start flowing in from Q4 onwards.
“We will continue to focus on the combined, co-working and the managed office business, and this obviously contributes to our managed office revenue,” he explained.
The Awfis Space Solutions CMD said that the deal was a “straight lease” that the company had done with the Adani-owned commercial property. Among the company’s two models, the leased model provides better margins.
“Essentially, we will generate a higher margin, because it's a straight lease format where we are investing the capital as well towards the fitouts,” Ramani said.
He further noted that the deal opens up a lot of opportunities for Awfis Space Solutions.
“Currently, the managed office business for us is almost 30% of our revenue today, of our co-working revenue. This certainly opens up a plethora of opportunities because it's a large contract,” he said.
Shares of Awfis Space Solutions Ltd. closed 0.23% higher at Rs 677 apiece on the NSE on Friday, while the benchmark index Nifty 50 ended 2.39% higher at 23,907.25.
