Flexible workspace provider WeWork India Management reported a steep decline in quarterly profit despite achieving record revenue, as last year’s earnings were buoyed by one-time deferred tax benefits. In its first results since listing last month, revenue from operations rose 22.4% to ₹5.75 billion, driven by strong demand from large enterprise clients and higher occupancy across centers. However, profit dropped sharply to ₹62.91 million from a year earlier, when a ₹2.35 billion tax credit had lifted earnings.

Investors are backing demand for integrated office spaces as global firms expand in India to leverage its cost-effective, English-speaking and tech-savvy workforce. The trend has placed the country among Asia-Pacific’s top office markets, alongside Japan and Singapore, according to real estate services provider CBRE, according to a Reuters report.

The company, which licenses its brand from its now-bankrupt U.S. namesake WeWork Global, reported a sharp drop in profit to 62.91 million rupees. A year ago, a 2.35-billion-rupee tax credit boosted earnings.

WeWork India, which is majority-owned by Bengaluru-based developer Embassy Group, provides workspace solutions ranging from private offices to flexible co-working spaces.

Its membership plans include options like day passes and all-access subscriptions, with pricing going up to 15,000 rupees per month.

Listed peer Smartworks Coworking Spaces posted a narrower second-quarter loss. IndiQube Spaces will report later on Monday and Awfis Space Solutions reports on Tuesday.

As of September, WeWork India operated 70 centers with 114,500 desks across eight tier-1 Indian cities, while Smartworks had 59 centers with a combined seating capacity of 294,000 across 14 cities.

The company’s stock has fallen 0.6% since its debut and closed 1.2% lower at 623.70 rupees on Monday.