Tanla announces unaudited financial results for Q1 FY 2021
Hyderabad, August 12, 2020: [NSE-TANLA; BSE-532790] — The Board of Tanla Solutions Limited at its Board Meeting held on August 12, 2020, announced the un-audited financial results for the quarter ended on June 30, 2020, for FY21.
- Revenue at ₹455.5 crores increased by 15% sequentially from the first quarter of FY20.
- Gross Margin at ₹105.3 crores increased by 37% sequentially from the first quarter of FY20.
- Net Profit at ₹78.6 crores increased by 204% sequentially from the first quarter of FY20.
- EPS at ₹5.17, increased by 196% sequentially from the first quarter of FY20.
- Tanla and all its subsidiaries remain debt-free.
- Provision of ₹3.7 crores for loss of investment in liquid funds and a provision of ₹2.92 crores created for doubtful debts in FY20 have been reversed in the current quarter, as the same has been realized.
- A tax refund of ₹1.44 crore has been received during Q1FY2021.
- Interest income of ₹3.42 crore comprises of ₹1.4 crores as interest on TDS and ₹2.02 crore realized as interest from fixed deposits made in HDFC Bank.
“Tanla’s quarterly performance bucks the trend amidst the raging pandemic disrupting global economies.,” said Uday Reddy, Chairman & Managing Director of Tanla. “Our unique market standing as a leading Digital and Cloud Communications player have resulted in robust topline and bottom-line growth both YOY and QOQ.”
Commenting on TRAI’s directive for the commercial launch of DLT services from Sept 1, 2020, Uday Reddy said,” With the commercial rollout of Trubloq slated for September 1, this blockchain-enabled platform has the traction to become the gold standard in its space. For Regulators, Telco’s and Enterprises alike spams and mobile fraud risks can be mitigated and additionally provide the end-users with the power to choose.”
Business Highlights
- During Q1FY21, 80 new customers were signed up with an annual potential revenue of ₹80 crore, constituting a healthy mix of customers from leading verticals (e-commerce, BFSI, EdTech, Telecom etc.) including established brands to high potential startups.
- Tanla was awarded a contract by a leading telecom service provider in Dubai for deploying the subscriber consent management system for promotional/bulk SMS based on blockchain technology.
Corporate and other Highlights
Update on Buy-back
In the buyback offer, 1.67 Cr number of shares were tendered, representing 87.80% of the buy-back offer size, resulting in the paid-up share capital reducing to 13.55 Cr equity shares of ₹1/ each from *15.22 Cr equity shares of ₹1/ each.
- Post-buy-back, the number of shareholders reduced by 3614 shareholders from 50,711 on June 12, 2020, to 47,097, on July 31, 2020.
- Total buy-back proceeds of ₹135.2 crores were discharged to the shareholders on July 22, 2020, and buy-back tax of ₹29.5 crores was paid on August 5, 2020.
- The Shareholding pattern pre and post-buy-back is as given below:
| Pre-Buyback (as on June 12th, 2020) | Post-Buyback (as on July 31st, 2020) | |||||
| Particulars | No. of shareholders | No. ofshares | % ofshareholding | No. of shareholders | No. ofshares | % of shareholding |
| Promoters | 6 | 5,36,10,558 | 35.21 | 6 | 5,36,10,558 | 39.55 |
| Banyan Investments Limited | 1 | 2,19,99,824 | 14.45 | 1 | 2,19,99,824 | 16.23 |
| Employees | 45 | 85,32,785 | 5.6 | 42 | 80,47,835 | 5.94 |
| Public | 50,659 | 6,81,14,390 | 44.74 | 47,048 | 5,19,06,588 | 38.27 |
| Total | 50,711 | *15,22,57,557 | 100.0 | 47,097 | 13,55,64,805 | 100.0 |
*Note: Listing approval from BSE Limited is pending for listing of 62,85,858 Equity Shares allotted on April 3, 2020, pursuant to the conversion of warrants.
Update on Merger
- The Hyderabad bench of the Honorable NCLT approved the merger of Karix Mobile Private Limited (“Karix”) and Unicel Technologies Private Limited (“Unicel”) with Tanla Corporation Private Limited (“Tanla”) on June 30, 2020.
- As per the NCLT Order, the appointed date for the merger is April 09, 2019.
- As approved in the NCLT Order, Tanla shall be named as Karix subject to regulatory approvals.
- As an impact of Merger, Goodwill amounting to ₹158.4 crores is now available as a tax allowable expense for Tanla.
HR Update
The annual appraisal of the employees has been conducted and the employees have received the increments and promotions as per the Company Policy, for FY2021, resulting in the total resource cost increase by ~ 10%.
For Further Financial updates, visit https://tanla.com/investors.html
Auditors
Internal Auditors: Deloitte Touche Tohmastu India LLP
Statutory Auditors: MSKA & Associates
