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

Hyderabad (Telangana) [India], July 23 (ANI/PRNewswire): Tanla Platforms Limited, India's largest CPaaS provider, today announced its financial results for the quarter one of FY'21-22.
Key Metrics: First Quarter
Revenue was Rs 626.38 crore, and grew by 38% YoY
Operating profit stood at Rs 134.53 crore, and grew by 79% YoY
Net Profit was Rs 104.48 crore, and grew by 33% YoY
Earnings per share was Rs 7.68, and grew by 49% YoY
Cash conversion (operating cash flow to operating profit) was at 102%
Cash & Cash Equivalents was Rs 717.11 crore, up from Rs 247.02 crore
Board outcome
The Board of Tanla approved buyback of equity shares, for an aggregate amount not exceeding Rs 65 crore at a price not exceeding Rs 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 Rs 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 Rs 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 Rs 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 Rs 104.48 crore, delivering second consecutive quarter of Rs100 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 Rs 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.
Invitation to earning call:
Tanla will host a conference call and live webcast to discuss the financial results.
Conference call details:
The conference call will begin at 5.30 PM IST on July 22, 2021. Interested parties may listen to the call by dialing +91 22 6280 1141 / +91 22 7115 8042, or if outside India, by dialing toll free number UK 08081011573, USA 18667462133, Hong Kong 800964448, and Singapore 8001012045. The live audio webcast link will be available on the Tanla website
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