Awfis Senior Executive Accused of Insider Trading
Awfis Space Solutions Limited, a co-working space company, recently reported a trading violation involving one of its executives. Anindita Seal Sarkar, the Vice President of Sales, was found to have sold 15,764 shares and purchased 25 equity shares without the proper clearance, which goes against the company’s insider trading guidelines.
The issue came to light during a routine review on November 26, 2024. Awfis promptly referred the matter to its Audit Committee, highlighting that Sarkar’s actions were not in line with the company’s internal policies and regulatory standards. The company emphasized that the trade was a breach of its Insider Trading Code. However, Awfis clarified that no monetary penalty was imposed, and there were no previous violations reported in the current fiscal year.
On a brighter note, Awfis Space Solutions saw a significant increase in revenue from operations for Q2 FY25, with a rise of 40.46% to Rs 292.38 crore compared to the previous year. The company achieved profitability in the July-September quarter, posting a net profit of Rs 38.67 crore, a stark turnaround from the Rs 4.34 crore loss in Q2 FY24.
Total expenses also rose by 30.85% year-on-year to Rs 287.29 crore, primarily driven by increased sub-contracting, employee, and operational costs as the company expanded to meet growing demand. Sub-contracting expenses, tied to their profit-sharing model, increased by 30.80% year-on-year to Rs 56.13 crore, while employee costs went up by 16.75% to Rs 39.38 crore. Operating expenses also saw a 30.41% year-on-year increase to Rs 87.01 crore.
The core segment of Awfis Space Solutions, which involves renting co-working spaces and related services, generated Rs 218.31 crore, making up nearly three-fourths of the company’s revenue and showing a 43% quarter-on-quarter increase. Revenue from construction and fit-out projects also experienced growth, rising by 36.3% to Rs 68.15 crore.
In summary, while facing a trading violation internally, Awfis Space Solutions also saw significant financial growth and profitability in the recent quarter, underscoring the company’s resilience and commitment to meeting market demands.
