PhysicsWallah Profit Slides 91% Despite Revenue Surge

Key Points:

• Profit Drop: PhysicsWallah saw its net profit plunge 91% in FY23, going from Rs 98.2 crore to Rs 8.9 crore.
• Revenue Growth: Despite the profit drop, the company witnessed a 243% increase in revenue, reaching Rs 804 crore.
• Rising Expenses: The massive drop in profit is attributed to a 671% surge in total expenditure, hitting Rs 794.5 crore.
• Key Expense Drivers: The main contributors to the expense increase were:
  • Employee benefits: Up 878% to Rs 413.8 crore due to expansion and hiring.
  • Advertising: Up 600% to Rs 67 crore.
  • Rent: Up 1,500% to Rs 57 crore due to physical expansion.

Context:

• PhysicsWallah has been on an aggressive expansion spree, opening offline centers and acquiring other firms.
• This growth strategy came with increased costs, leading to the profit decline.
• It's important to note that despite the profit drop, PhysicsWallah remains profitable, unlike many other EdTech startups.