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.

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