Introduction:
Tanla Solutions founded in the year 1999, a Hyderabad based Indian company is a leading provider of telecom solutions to Mobile Operators, Hand set Manufacturers, Content aggregators, ISVs and Media companies globally. With over 100 customers in 32 countries, Tanla provides solutions in the areas of Voice, Video, Messaging, Application/ Content Licensing and Mobile Payments and is the first company to launch 3G VAS services in India.
Tanla’s Mobile Payment Gateway is connected with more than 100 mobile operators and processes mobile payments in over 160 countries through operator, credit/ debit card billing. Leading content aggregators, ISVs and hand set manufacturers including Nokia use Tanla mobile payment gateway to market their applications/ content globally. Its License Manager product is embedded in more than 300 million Nokia handsets globally. Located in 9 countries, Tanla employees more than 300 telecom professionals
Key Numbers
Market Cap.: ₹ 320.23 Cr.
Current Price: ₹ 32.90
Book Value: ₹ 61.91
Stock P/E: 22.01
Highlights of Q2 FY16
– International A2P messaging hub is operational from Oct 2015. 2 large international clients have been boarded in Q2 and they have started commercial traffic in October 2015, which will ramp up over the coming quarters.
– Delay in commercial launch of the Singapore hub was a result of implementing the changed regulations for International messaging outlined by TRAI.
– Domestic – Total volume processed in Q2FY16 is 11.75 billion messages as compared to 11.64 billion messages in Q1FY16, an increase of 156% over Q2 FY15 and 1% over Q1 FY16.
– India A2P messaging hub recognized as the preferred platform for delivering mission critical transactional messages like OTP’s, transaction, delivery and security alerts due to its industry leading processing times.
– M-Payments – 45.4 Mn transactions were processed during Q2 FY2016 compared to 47 Mn Transactions in Q1 FY2016.
Turn around story
In FY14, the management decided to move away from a high capex and long gestation businesses to a more B2C transactional one. They decided to derisk from lumpy concentrated revenue sources to a more diversified and margin enhancing clientele. The renewed focus started paying off and company partnered some major telecom players like Vodafone to provide messaging services. Tanla currently has a 60% market share in A2P messaging.
Disclosure – Not invested
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