Country for PR: United Kingdom
Contributor: PR Newswire Europe
Thursday, August 13 2020 - 07:08
Tanla announces un-audited financial results for Q1FY2021
HYDERABAD, India, August 12, 2020 /PRNewswire-AsiaNet/ --

    The Board of Tanla Solutions Limited (NSE: TANLA) (BSE: 532790) 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 INR 455.5 crore increased by 15% sequentially from first 
quarter of FY20. 
    - Gross Margin at INR 105.3 crore increased by 37% sequentially from first 
quarter of FY20. 
    - Net Profit at INR 78.6 crore increased by 204% sequentially from first 
quarter of FY20. 
    - EPS at INR 5.17, increased by 196% sequentially from first quarter of 
    - Tanla and all its subsidiaries remain debt free. 
    - Provision of INR 3.7 crore for loss of investment in liquid funds and a 
provision of INR 2.92 crore created for doubtful debts in - - 
    - FY20, have been reversed in the current quarter, as the same have been 
    - Tax refund of INR 1.44 crore has been received during Q1FY2021. 
    - Interest income of INR 3.42 crore comprises of INR 1.4 crore as interest 
on TDS and INR 2.02 crore realized as interest from fixed deposits made in HDFC 

    "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 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 INR 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 INR 1/ each from *15.22 Cr equity 
shares of INR 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 INR 135.2 crore were discharged to the 
shareholders on July 22, 2020 and buy-back tax of INR 29.5 crore 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. of shares      % of 
shareholding No. of shareholders   No. of shares   % 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 conversion of 

    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 INR 158.4 crore 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


    Internal Auditors: Deloitte Touche Tohmastu India LLP
    Statutory Auditors: MSKA & Associates

    About Tanla

    Tanla is a Hyderabad, India-based company, established in 1999. It is a 
global leader in its domain as one of the largest Cloud Communication 
providers, handling over 200 billion business communications annually. Tanla is 
innovating the way the world communicates, continuously raising the bar through 
enhanced speed, ease, and simplicity of Cloud Communication solutions, adopting 
cutting-edge technologies  like  blockchain, Artificial  Intelligence,  
Machine  Learning to meet the discerning needs of a diverse clientele, from 
enterprises to carriers across geographies. Tanla has always adopted new 
technologies and has many patents to its name including world's first 
blockchain based commercial communication stack "Trubloq" to address the 
growing concerns for spam and fraud. Tanla is working with all leading Telco's 
in India creating India's first Telecom Blockchain Network. Tanla is a public 
limited company listed on leading Indian stock exchanges (NSE: TANLA & BSE: 

    Safe Harbor:

    This presentation might contain 'forward-looking statements' that are based 
on our current expectations, assumptions, estimates and projections about Tanla 
Solutions Limited (the "Company"), our industry, economic conditions in the 
markets in which we operate, and certain other matters. Those statements 
include, among other things, the discussions of our business strategy and 
expectations concerning our market position, future operations, margins, 
profitability, liquidity, and capital resources. These statements are subject 
to known and unknown risks, uncertainties and other factors and they depend on 
future events and circumstances. Such statements do not guarantee future 
results or development and the actual results or outcomes may differ materially 
from those implied by the forward-looking statements. The risks and 
uncertainties relating to these statements include, but are not limited to, 
risks and uncertainties regarding fluctuations in earnings, fluctuations in 
foreign exchange rates, our ability to manage growth, intense competition in 
the services provided by the Company, including those factors which may affect 
our cost advantage, wage increases, our ability to attract and retain highly 
skilled professionals, time and cost overruns on fixed-price, fixed-time frame 
contracts, client concentration, restrictions on  immigration,  industry  
segment concentration, our ability to manage our international operations, 
reduced demand for technology in our key focus areas, disruptions in 
telecommunication networks or system failures, our ability to successfully 
complete and integrate potential acquisitions, liability for damages on our 
service contracts, the success of the companies in which the Company has made 
strategic investments, withdrawal or expiration of governmental fiscal 
incentives, political instability and regional conflicts, regulatory changes, 
legal restrictions on  raising  capital  or  acquiring  companies outside 
India, and unauthorized use of our intellectual property and general economic 
conditions affecting our industry. In light of these and other uncertainties, 
you should not conclude that the results or outcomes referred to in any of the 
forward-looking statements will be achieved. All forward-looking statements are 
based on information available to us on the date hereof, and we do not 
undertake to update these forward-looking statements to reflect future events 
or circumstances unless required to do so by law.


    Source: Tanla Solutions Ltd