Tanla Platforms ~ Leading player in the fast-growing CPaaS market

Concall Recording:

Important points from the ConCall:

1. Q1 is seasonally weak quarter/ One client business portion (not fully) let go because of pricing pressure from competition-which is unsustainable, same client other area business (WhatsApp??) own/retained – This has around 3% margin impact, other one offs are – Infra upgrade -1% impact + currency fluctuation – 1% impact.
2. No guidance but confident that Margins to get back to 20% in the next two quarters Q2/Q3.
3. Most important point in the call – around 45 billion/month Cpaas transactions happening in India, including Government, Tanla only handling 2 billion/month, so Hugh market available for growth in India Itself. Imagine global opportunity.
4. VI – wisely integration mostly done, another couple of weeks to complete. TrueCaller started also going smoothly. Both VI & TrueCaller own based on better product not on pricing, wisely is costly, but everything on one platform.
5. Platform Wisely revenue will be step by step, slow and steadily it will grow in the next 4 to 6 quarters, very happy and confident how its progressing. Tanla is in no hurry.

Please consider some points I might have misunderstood or missed add if any.

Comments: Market reaction is obviously based on their past, surely over reacting, Industry itself growing by 25-30%, massive disruption, unless management goof up, massive opportunity lies a head, with nearly 1000 cr cash on Balance sheet, EV value @ Billion dollar now, let’s c how route mobile results will be, bullish on Cpaas industry.

HDFC sec q1 update:

Disclosure: Invested.