PR85104

HYDERABAD, India, August 12, 2020 /PRNewswire=KYODO JBN/ --

    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

FY20.

    - 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

realized.

    - 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 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 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:

    *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

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 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 https://tanla.com/investors.html 

    Auditors

    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: 532790)

    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.

    Contact: marketing@tanla.com

    Logo: https://mma.prnewswire.com/media/627459/Tanla_Solutions_Logo.jpg 

    Source: Tanla Solutions Ltd