Tanla net profit soars 33%, reaches an all-time high

Tanla Platforms Limited, India’s largest CPaaS provider, announced its financial results for the quarter one of FY’21-22.

Key Metrics: First Quarter

• Revenue was ₹626.38 crore, and grew by 38% YoY
• Operating profit stood at ₹134.53 crore, and grew by 79% YoY
• Net Profit was ₹104.48 crore, and grew by 33% YoY
• Earnings per share was ₹7.68, and grew by 49% YoY
• Cash conversion (operating cash flow to operating profit) was at 102%
• Cash & Cash Equivalents was ₹717.11 crore, up from ₹247.02 crore

Board outcome

The Board of Tanla approved buyback of equity shares, for an aggregate amount not exceeding ₹65 crore at a price not exceeding ₹1,260 per equity share, payable in cash, from the open market through stock exchange mechanism in accordance with the applicable regulations.

Uday Reddy, Chairman & CEO, Tanla Platforms Limited said, “We had a stellar start into the year with consistent acceleration in our revenue growth, while improving profitability and cash flows. The operating profit and net profit are at an all-time high, driven by increasing contribution from our platform business. Our financial performance is an outcome of our innovation led strategy and focused execution.

Tanla is growing at rate of knots. There is a Rule of 40 out there for SaaS companies, but Tanla has grown organically at Rule of 60 in Q1. This is a tangible demonstration of the strong unit economics within our business, and it showcases the inherent strength of the business model.

We are transforming the way large enterprises engage with their end customers. Our customers are growing, and we are growing with them. Our top 20 customers have grown 31% and we have 13 customers with annualized revenues greater than ₹50 crore in the quarter.

As we look forward, we will stay focused on our ‘one platform’ strategy. Wisely, our enterprise grade platform built for the entire CPaaS ecosystem, is seeing strong traction. Our alliance with Microsoft as a technology, cloud and GTM partner will pave way for our global expansion.”

Financial Highlights

India’s largest CPaaS provider registers strong growth while maintaining market leadership.

On a year-on-year basis, revenues grew by 38% to ₹626.38 crore for the first quarter. We have consistently accelerated our growth trajectory every quarter year over year.

The operating profit for the quarter was at an all-time high of ₹134.53 crore and grew by 79%. Operating profit margin for the quarter increased from 16.4% to 21.5%. Cash conversion (Operating cash flow to operating profit) was at 102%.

Net profit for the quarter was at an all-time high of ₹104.48 crore, delivering second consecutive quarter of ₹100 crore+ net profit.

Tanla and all its subsidiaries continue to remain debt free with surplus cash reserves.

Business Highlights

Products & Platforms

• Wisely, launched in January this year has gained traction among our customers. We have onboarded six marquee customers on the platform.
• Trubloq, the DLT platform built on blockchain to enforce the TRAI regulation saw massive adoption. We added 4,353 enterprises to the platform for the quarter.  
• Contribution of Platform business to overall gross margin has increased from 17% to 31%.

Enterprises

• The customer base has expanded with addition of 73 new customers during the quarter.
• Revenues from our top 20 customers have grown by 31% year-on-year and contribute to 66% of the overall revenue.
• We have 13 customers with annualized revenues of greater than ₹50 crore.

Response to Covid

Vaccination drive is currently under way for employees and their families. To date, 58% of employees along with their family members have been vaccinated.

Incorporation of subsidiary

Tanla Foundation has been incorporated to implement the CSR initiatives of the company.