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

I will clarify a few points. Rest you are entitled to your views (and your freind’s) as I am to mine.

1. International business does not mean ILD. By international business we mean traffic that is neither generating or terminating in India. Tanla’s UAE business of around 30 crore, for example, is international business. My point was that Tanla should hopefully drive such business (UAE, Suadi, Indonesia etc) to build it to 25%, and thus its India dependent business comes down to 75%.
2. 20-25% gross margin business is poor business to me. Whatsapp kind of 30-35% margin is decent business to me. Trubloq kind of high margin (90’s) is fabulous business to me. If you go and hear Uday Reddy, this is his lament too. The only thing he believes Tanla doesnt equal or better the global best is in the gross margin department (I 100% agree with him)
3. VF’s gross margin will equal Karix or could even be higher. Its EBITDA (which is the 5% you to refer to) wont. Karix does mostly large customer business and is 4+ times the size. VF does lots of smaller customers. By nature of business, realtive size and costs in running a company, Karix will enjoy higher EBITDA margins. If this were not to be true, wouldnt all other smaller players could potentially get to Karix’s EBITDA margins? Then why do they need to sell their business?
4. As to Uday Reddy’s reason – pl go through last 4 concalls for the quarterly result, read shareholders letter and then examine this decision in that perspective. Maybe you will realize things other than absolute trust in Uday’s vision.
   5.Wisely ATP – though this was not the topic here … anyway … I hope Tanla gets it all (Its best for all shareholders incl me). I doubt it will. At best it will be same set and scope of Telco’s as for Trubloq. Will be happiest to be wrong on this.

Hope this helps you and your friend. It helped me further clarify my mind.