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Business News/ Markets / Stock Markets/  Tanla Platforms shares spike 9.3% as company's revenue crosses 10 billion in Q2
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Tanla Platforms shares spike 9.3% as company's revenue crosses ₹10 billion in Q2

The company on Thursday reported a 19% YoY surge in revenue at ₹1,009 crore and 11% sequentially. Its consolidated net profit reached ₹143 crore, an increase of 29% YoY.

The performance of the stock this year has been impressive, as it is already up by nearly 54%. Premium
The performance of the stock this year has been impressive, as it is already up by nearly 54%.

Tanla Platforms, India's largest CPaaS (communications platform as a service) provider, saw a significant jump in its shares, rising by 9.3% to reach 1,120 apiece, in Friday's trading session following the company's impressive Q2 FY24 results. At 11.45 AM, the stock was trading with a gain of 6.70% at 1,090. 

The company on Thursday reported a 19% YoY surge in revenue at 1,009 crore and 11% sequentially. The revenue from its digital platforms grew by 27% YoY and 8% QoQ, led by Trubloq and Wisely OTT.

The revenue from Enterprise Communication improved by 18% YoY and 11% QoQ. The company said it is witnessing strong growth momentum in WhatsApp and has reached an annualised run rate of 3,000 million at a group level. It also said it has added 43 new customers on WhatsApp across the group.

Further, its EBITDA grew by 41% YoY to 197 crore, and the EBITDA margin improved by 312 bps in Q2 FY24. On a sequential basis, the EBITDA margin was down by 49 bps. On the bottom line, the company reported a consolidated net profit of 143 crore, an increase of 29% over the Q2 FY23 net profit of 110 crore.

The EPS (earnings per share), on the other hand, improved to 10.61 in Q2FY24 from 8.14 in the year-ago quarter. At the prevailing price, the stock trades at a price-to-earnings multiple of 28.79x, which is much lower compared to the industry P/E of 65.43x.

During the quarter, Tanla acquired Value First Digital Media Private Limited, India (“VF Digital India") (and its subsidiaries) from Twilio. The acquisition was closed on July 03, 2023, for an all-cash consideration of 3,737 million.

VF Digital India is a leading Indian CPaaS provider that offers the ability to connect with their customers globally across multiple communication channels. VF Digital India enables enterprises to connect with their customers over telecom (SMS and voice) and internet (chatbot, email, and OTT) channels.

Uday Reddy, Founder, Chairman, & CEO of Tanla Platforms Limited, said, “Q2 has been a milestone quarter for us with revenues crossing 10 billion for the first time. We have integrated ValueFirst India and delivered strong financial performance. We have a strong innovation DNA and deep domain knowledge, and we have been recognised as a Visionary in the Gartner Magic Quadrant for CPaaS."

The performance of stock this year has been impressive, as it is already up by nearly 54%. However, the journey for Tanla Platforms has been a tale of contrasting fortunes. In CY22, the stock faced an unprecedented downturn, experiencing a sharp decline after reaching its all-time high of 2,096 per share in January 2022.

Over the following 14 months, from January 2022 to March 2023, the stock plummeted to levels as low as 493, eroding nearly 75% of investors' wealth.

Meanwhile, the company has zero debt, Trendlyne data showed, while it had an ROE and RoCE of 30.621% and 34.44%, respectively, in FY23.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.

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Published: 20 Oct 2023, 12:24 PM IST
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