Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tanla Platforms Ltd (BOM:532790, Financial) has seen significant growth in its OTT channels, which now account for 29% of the revenue base, indicating a successful shift towards digital communication platforms.
- The company has successfully signed RCS platform deals with two large telcos outside India, marking its first major international expansion.
- Despite industry-wide pricing pressures, Tanla Platforms Ltd (BOM:532790) has maintained a strong cash position, with a bank balance of INR 1,009 crore and zero debt, allowing for strategic investments and shareholder returns.
- The enterprise segment has shown resilience with double-digit growth in NLD volumes, and the company is optimistic about future pricing corrections benefiting both top line and margins.
- Tanla Platforms Ltd (BOM:532790) has a promising pipeline for its Wisely ATP platform, which has shown success in initial deployments and is expected to contribute to future growth.
Negative Points
- The ILD SMS revenue continues to be a drag, although its impact is lessening as it now constitutes less than 10% of the revenue.
- The platform revenue showed sequential weakness, attributed to the loss of the Vodafone contract and a longer-than-expected sales cycle for new platforms.
- Gross margins in the enterprise segment have been trending downwards due to pricing pressures and investments in growth initiatives.
- The company faces challenges in scaling its Wisely ATP platform, with longer sales cycles and the need to prove its use cases to potential clients.
- There is uncertainty in the market regarding pricing stability for OTT channels, which could impact future revenue and margin projections.
Q & A Highlights
Q: What is the current status of ILD SMS revenue and its impact on Tanla's overall revenue?
A: Abhishek Jain, CFO, stated that ILD SMS revenue continues to be weak, now constituting only 10% of the revenue base. The focus has shifted to OTT channels, which now make up 29% of the revenue. The weakness in ILD is not expected to be a significant concern for FY26.
Q: Can you explain the sequential weakness in platform revenue despite overall growth?
A: Abhishek Jain, CFO, explained that the sequential weakness is a temporary blip and not a cause for concern. The company has signed an RCS platform with two large telcos outside India, which is expected to contribute to revenue by the end of June. The platform business remains promising for FY26 and beyond.
Q: What are the expectations for gross margins in the enterprise segment?
A: Abhishek Jain, CFO, mentioned that the company aims to maintain gross margins between 25% to 27%. While there has been pricing pressure, especially in SMS, the company is working on delivering solutions more efficiently to improve margins.
Q: How is Tanla Platforms planning to expand its global footprint?
A: Abhishek Jain, CFO, highlighted that Tanla is focusing on expanding its enterprise business in the Middle East and has already signed two large telcos outside India for its platform business. The company is taking strategic steps to grow internationally.
Q: What is the outlook for the OTT platform and its impact on Tanla's growth?
A: Abhishek Jain, CFO, and Deepak Goyal, Chief Business Officer, emphasized that the OTT platform has shown strong growth, now accounting for 30% of revenue. The company has gained market share and expects continued growth, with plans to charge for additional services, which should improve margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
