Physicswallah shares surge nearly 8% after company says it plans increase share of online revenue

Shares of Physicswallah, the e-learning solutions provider, rose as much as 7.6% to hit an intraday high of ₹108 on the National Stock Exchange (NSE) on Friday, February 13. On the BSE, Physicswallah shares climbed as much as 7.56% amid spike in trading acticity.

Physicswallah shares came under buying interest after the company released the transcript of earnings conference call post market hours on Thursday. Physicswallah in its earnings transcript said that it continues to increase its share of overall online revenues.

"Like we mentioned in the last earnings call as well, our playbook is to build communities and continue to increase our share of overall online revenues, that is the focus you know for us going forward," company said.

"In terms of our breakup of our online and offline segment, our online segment grew at, now contributes almost like 51% and grew at 38% year-over-year. Offline grew 26% year-over-year and contributes at 46% and others contribute 3%," Physicswallah said.

Physicswallah last week reported that its net profit in October-December period rose 10% to ₹101 crore from ₹91 crore in the same period last year.

The company's revenue from operations advanced 34% in the third quarter of current financial year to ₹1,082 crore from ₹810 crore in the year-ago period.

Physicswallah reported stable operational performance as its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) advanced 28% to ₹236 crore but its EBITDA margin contracted by 90 basis points to 21.8%.

"PW’s growth has been driven by an expanding user base and supported by a diversified portfolio, including AI-powered products, value-added services, crash courses, and offline batches across segments such as Civil Services Examinations, Other Government Exams, Chartered Accountancy, etc.," the company said.

Meanwhile, Physicswallah shares were witnessing higher than usual trading activity as its trading volume jumped by 2.6 times to 4.3 crore shares compared with an average trading volume of 1.65 crore shares.

As many as 30.52 lakh shares changed hands on the BSE compared with an average of 5.83 lakh shares traded daily in the past two weeks.

As of 12:01 pm, Physicswallah shares traded 7.7% higher at ₹108, outperforming the NIFTY50 index which was down nearly 1%.