Fundamental analysis of the Tanla platform

Fundamental analysis of the Tanla platformS: Have you ever thought about who connects you with companies and developers for communication or validation? There are companies that offer Communications Platform as a Service (CPaaS), which allows real-time communications capabilities (e.g. voice, video, instant messaging) to be built directly into proprietary apps and software.

Fundamental analysis on Tanla platform conducts in-depth analysis of the business, industry, finances, future plans, etc.

Fundamental analysis of the Tanla platform

Company Overview

Tanla Platforms Limited was established in 1999 as a bulk SMS provider in Hyderabad, India. Today they are one of the world’s largest cloud communications providers.

They are revolutionizing the way the world communicates by continually improving the speed, ease, and simplicity of cloud solutions.

The Tanla platform supports accessibility, provides data security and data privacy, and curbs spam and fraud for consumers. It is included in indices such as Nifty 500 and BSE 500, Nifty Digital Index, FTSE Russell and MSCI.

Tanla’s revenue is generated from its digital platforms and corporate communications businesses. they developed True block – Development of the world’s largest blockchain-based platform for anti-spam and anti-spam wisely – AI/ML platform for smishing suppression.

It is India’s number one choice among industry leaders and serves over 2000 enterprises in India with a 35% CPaaS market share, 45% NLD (SMS) market share and 15% WhatsApp market share. Selected for 3/4 of India’s top telcos, 9/10 of banks, 8/10 of financial services, 7/10 of healthcare, FMCG, digital natives and many government projects.

We have a presence in North America, Europe, SEA and the Middle East and serve renowned technology companies and large corporates in India.

Industry Overview

The Indian economy is showing great confidence in its recovery from the pandemic era. The World Bank estimates that India’s GDP growth will be 6.9% in FY23 and 6.3% in FY24, contributing nearly 17% to global growth. Domestic demand and capital investment explain this growth.

The digital communication and interaction market is large and growing. The total market size (TAM) of Communication Platform as a Service (CPaaS) will reach approximately $5-6 billion in India by 2027. Considering emerging regions such as the Middle East and Southeast Asia, the potential market could reach around $11 million. .

Tanla Platform – Finance

Let’s take a look at Tanla Platforms’ important financial results and ratios.

Sales and Net Profit

The company’s financial statement shows that its revenue grew by 4.6% from FY22 to FY23 from ₹3206 Crores to ₹3355 Crores respectively. On a 4-year CAGR, the company has grown at 35.20%. Revenue growth was primarily driven by increased wallet share from existing businesses, ILD pricing changes, growth on WhatsApp and other channels, addition of new customers and creation of new revenue streams Trubloq.

Although revenue increased, the company’s net profit declined by 17% from ₹539 Crores in FY22 to ₹448 Crores in FY23. On a 4-year CAGR, the company has grown by 96.58%. The decline in profit in FY23 was primarily due to lower gross margin, higher operating expenses, and higher depreciation and amortization expenses.

The loss in FY20 was primarily due to accelerated depreciation provided for redundant technology assets to comply with regulatory changes to move operations to the cloud and move to blockchain technology.

profit

Tanla reported a decline in operating profit margin (OPM) of 4.3% and net profit margin (NPM) of 3.48% from FY22 to FY23. The decline was consistent with net profit. Although profit margins fell, they exceeded the five-year averages of 15.45% and 7.52%, respectively.

Margins were impacted by pricing pressure in our corporate communications business.

rate of return

Return on capital employed declined significantly by 20.55% from 60.27% in FY22 to 39.71% in FY23, but considering the five-year trend, RoCE has increased by nearly 35%. The five-year average ROCE is 25.25%.

Return on equity was reported to have decreased by 16.67% from 48.23% in FY22 to 31.56% in FY23. Considering the long-term perspective, RoE has increased by almost 26%. The 5-year average RoE is 19.87%.

The decline in return on equity and return on employed capital was primarily due to a 17% decline in profits in FY23 compared to FY22.

leverage ratio

Tanla Platforms has had a debt to equity ratio of 0x for the last four years. Our company was converted to a debt-free company as of March 31, 2020.

Key Indicators – Tanla Platform

Tanla’s share performance compared to some indices

Tanla Platform – Future Plans

• Tanla plans to significantly strengthen its international presence in both its enterprise communications and digital platforms businesses.
• The acquisition of ValueFirst opens opportunities for expansion into Southeast Asia. This will provide access to the international CPaaS market, estimated to be worth over $200 billion.
• Achieve net carbon neutrality by 2025.
• Certify all office locations and data centers to ISO 14001 by 2025.
• We’re working to create a safer and more secure environment for our millions of users.

conclusion

Concluding the article “Fundamental analysis of the Tanla platform”, we understood the business of the Tanla platform, its performance over the past five years and its future plans. Prior to investment, additional analysis is required to determine the nature and suitability of risk and return. We’d love to hear your thoughts about the Tanla platform in the comments section below.

Written by Ashish Agarwal

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