Tanla Solutions : Q1 FY 2017 Investor Update

Q1 FY2017 Investor Update

Investor Update - Q3 FY16 1/13

Hyderabad | Thursday, August 04th, 2016

Safe Harbor

Certain statements in this release reflecting our future growth prospects are forward - looking statements which involve a number of risks and uncertainties that could cause results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include but are not limited to risks and uncertainties with respect to fluctuati0on in earnings, our ability to manage growth, intense competition on IT services including these factors which may affect our cost advantage, cost of resources, introduction of regulations that might impact the prospects, our ability to successfully complete the planned projects, general economic conditions affecting our industry. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.

Tanla Technology Centre, Madhapur,Hyderabad, India - 500081

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   Financial:

   • The Company has prepared its first Ind AS compliant Financial Statements for the periods commencing from April 01, 2016 with restated comparative figures as required.

   • Revenue in Q1 INR 97.9 Crores from INR 113.8 Crores in Q4.

   • Domestic Revenue increased by 31% to INR 88.8 Crores from INR 67.5 Crs in Q4FY16, driven primarily by growth in the domestic A2P messaging business.

   • International Revenue decreased to INR 9.2 Crores from INR 46.2 Crores in Q4FY16. This is due to a defocus from inter national markets that required high capex and as a result was producing a negative ROI over a long term. The management took the decision not to renew the licenses and connectivity in markets where the ROI continues to be negative and required additional capex.

   • PBT increased to INR 5.9 Crores from a loss of INR (0.52) * Crores in Q4 FY16.

   • PAT increased to INR 4.1 Crores from a loss of INR (4) ** Crores in Q4FY16.

     * PBT of INR 3.11 Crores in Q4FY16 as per I-GAAP has been re-stated under IndAS

     ** PAT of INR 0.4 Crores in Q4FY16 as per I-GAAP has been re-stated under IndAS

     Business:

     M-Messaging: International:

     • 850 Mn messages were processed during Q1FY17 Q4 from the Singapore hub against 640 Mn messages during Q4FYQ16.

• Agreements have been executed with a major social media network and a leading OTT player in Asia.

• Partnered with a leading telecom operator in India for processing messages terminating into India and its global hub for provision of international A2P messaging services globally.

  Domestic:

• Domestic messaging hub has processed 11.2 Bn in Q1FY17 compared to 8.3 Bn in Q4FY16 up by 35%

• Executed agreements with 2 large domestic mobile operators for domestic A2P messaging.

Voice Vertical:

• A major Telco in India floated a Request for Proposal (RFP) for cloud communication services. Tanla's platform was chosen against several leading players in the industry. The platform will go live in Q3FY17 and will be used to provide cloud communication services to enterprises in India.

  Corporate Highlights:

• 20th AGM of the shareholders will be held on Monday, September 12th 2016 at 11.30 AM at Hotel HICC Novotel, Hyderabad.