HYDERABAD, India, Feb. 6, 2021 /CNW/ — Tanla Platforms Limited today announced its results for the quarter ended 31 December 2020 in comparison with the same period the previous financial year.
Key Metrics
Revenues were Rs 654.1 crore, up by 21% EBITDA was Rs 126.9 crore, up by 99%
Net profit was Rs 93.5 crore, up from Rs 0.7 crore
Cash and cash equivalents were Rs 449.3 crore, up from Rs 204.8 crore Earnings Per Share was Rs 6.87, up from Rs 0.05
Uday Reddy, Chairman & CEO of Tanla Platforms Limited said, “The quarterly results demonstrate the depth of Tanla’s capabilities in the platforms and commercial communications domain. Our unwavering focus, and investment in platforms and products, people, customer success and brand have all led to us posting the best quarterly performance till date. With our market position stronger than ever before, we are committed in our decision to expand our global footprint in the CPaaS business.”
“Trubloq, the DLT platform built to enforce the TRAI regulation has seen massive adoption across enterprises, telemarketers and telcos. To date, we have onboarded more than 34,000 enterprises. Trubloq was only launched commercially in September, and now processes over 70% of A2P traffic in India, topping 1 Billion interactions in a single day last month. Trubloq significantly bolstered Tanla’s revenues in the third quarter.
“Data security, data privacy and traceability of digital footprint are no longer just compliance requirements, rather fast emerging as a potential source of competitive advantage and so are becoming a strategic priority for organisations. The Wisely platform, our latest offering launched in January ensures that end users data security and data privacy is never compromised when sending and receiving commercial communications. Wisely is on its way to “Uberize” the CPaaS ecosystem.”
Financial Highlights
India’s largest CPaaS provider delivered its best third quarter revenues.
On a year-on-year basis, revenues grew 21% to Rs 654.1 crore accounting for more than a third of last year’s annual revenues. The EBITDA was up by 99% to Rs 126.9 crore for the same period, crossing the Rs 100 crore mark for the first time. The company reported a highest ever net profit of Rs 93.5 crore.
EBITDA to cash conversion was 78% and cash generated from operating activities was Rs
225.2 crore, for the quarter. Tanla & all of its subsidiaries continue to remain debt free.
Business Highlights
Tanla’s growth in business for the quarter was propelled by 81 new client opportunities. These
new deals could augment the annual revenue by Rs 90 crore.
Early January, Tanla also marked a significant milestone in the platforms business with the launch of Wisely, a blockchain-enabled CPaaS offering built & architected by Microsoft. As a unique marketplace for enterprises and suppliers, Wisely offers a global edge-to-edge network that delivers private, secure, and trusted communication experiences. It was the first time that an Indian technology company released a disruptive platform for global adoption.
New Enterprise Wins
Responding to COVID-19
During these trying periods, we focused on keeping our employees safe, encouraging them to work from home by providing them with adequate technology and infrastructure. Even as we worked remotely, we made certain that the needs of our customers and partners were always met and everybody remained engaged, healthy, and productive in their new working environment.
About Tanla:
Tanla Platforms Limited (NSE:TANLA; BSE:532790) transforms the way the world collaborates and communicates through innovative CPaaS solutions. Founded in 1999, it was the first company to develop and deploy A2P SMSC in India. Today, as one of the world’s largest CPaaS players, Tanla processes more than 800 billion interactions annually and about 70% of India’s A2P SMS traffic is processed through its distributed ledger platform-Trubloq, making it the world’s largest Blockchain use case. Tanla touches over a billion lives carrying mission critical messages meeting the needs of the world’s largest enterprises. Tanla Platforms Limited is headquartered in Hyderabad, India and is expanding its presence globally.
|
Consolidated Profit and Loss (Un-audited): |
|||
|
Rs in Lakhs |
|||
|
Particulars |
Q3FY21 |
Q3FY21 |
Q2FY20 |
|
I. Revenue from operations |
65,411.2 |
58,324.7 |
53,903.9 |
|
II. Other income |
242.5 |
474.5 |
222.7 |
|
III. Total Income (I+II) |
65,653.8 |
58,799.1 |
54,126.6 |
|
IV. Expenses |
|||
|
Cost of services |
49,296.8 |
44,891.7 |
43,510.6 |
|
Employee benefits expense |
2,003.5 |
2,283.3 |
1,826.4 |
|
Depreciation expense |
892.1 |
992.3 |
7,083.9 |
|
Connectivity expenses |
286.4 |
280.8 |
203.8 |
|
Finance cost |
17.4 |
8.9 |
183.9 |
|
Other expenses |
1,136.3 |
1,115.7 |
1,994.2 |
|
Total expenses (IV) |
53,632.5 |
49,572.6 |
54,802.7 |
|
V. Profit before tax (III – IV) |
12,021.3 |
9,226.5 |
(676.2) |
|
VI. Tax expense: |
|||
|
Current tax |
1,680.4 |
1,053.2 |
(464.7) |
|
Prior period taxes/MAT credit |
– |
– |
30.6 |
|
Deferred tax |
988.9 |
26.0 |
(310.2) |
|
VII. Profit for the year (V -VI) |
9,351.9 |
8,147.3 |
68.2 |
|
VIII. Other comprehensive income |
(173.0) |
(330.5) |
51.1 |
|
IX. Total Comprehensive income for the period (VII + VIII) |
9,178.9 |
7,816.8 |
119.3 |
|
X. Earnings per equity share (in INR) |
|||
|
Basic & Diluted (not annualised) |
6.87 |
5.85 |
0.05 |
Logo – https://mma.prnewswire.com/media/627459/Tanla_Solutions_Logo.jpg
SOURCE Tanla Platforms Limited
For further information: Seshanuradha Chava, General Counsel & Chief Regulatory Officer, Email: [email protected] Balaji Kesavaraj, Chief Marketing Officer, Email: [email protected] Deepika Amirapu, Director, Communications, Email: [email protected]
Former chief executive officer of RBC Dominion Securities Tony Fell is campaigning to require the Canadian financial industry to account for inflation in how it reports investment returns.Neville Elder/Handout
While the average Canadian is fixated on the price of gasoline and groceries, inflation may be quietly killing their investment returns.
Compounded across many years, even modest inflation can deal a powerful blow to a standard investment portfolio. And investors commonly underappreciate the threat.
But a legend of the Canadian investment banking industry is trying to change that.
Tony Fell, the former chief executive officer of RBC Dominion Securities, is campaigning to require the Canadian financial industry to account for inflation in how it reports investment returns.
“I think they will find this very hard to argue against,” he said in an interview. “It’s a matter of transparency and reporting integrity. But that doesn’t mean it will happen.”
Mr. Fell made his case in a recent letter to the Ontario Securities Commission, arguing that Canadian investors are being misled. He has not yet received a response from the regulator.
Canadians with an investment account receive a statement at least once a year detailing how their investments have performed. For the most part, rates of return are calculated on a nominal basis, meaning they have no inflation component factored in.
A real return, on the other hand, accounts for the hit to purchasing power from rising consumer prices.
These figures, Mr. Fell argues, would give investors a clearer picture of how much they have gained from a given investment.
And since Statistics Canada calculates inflation on a monthly basis, the investment industry would already have access to the data it needs to make the switch to real returns. It would be very little trouble and no extra cost, Mr. Fell said.
Still, he said he expects the investment industry will resist his proposal. “The mutual-fund lobby is so strong, and nobody wants to rock the boat too much.”
He points to the battle to inform Canadians of the investment fees they pay. For 30 years, investor advocates have been pushing for improvements to disclosure.
One major set of regulatory changes, which took effect in 2016, required financial companies to disclose how much clients paid for financial advice.
But the reforms left out one major component of mutual-fund fees. The cost of advice is there, but many investors still don’t see how much they pay in fund-management fees, which amount to billions of dollars paid by Canadians each year.
Total cost reporting, which should finally close the fee-disclosure gap, is set to come into effect in 2026. “It’s outrageous,” Mr. Fell said. “That should have been done years ago.”
So, it’s hard to imagine the industry warmly receiving his proposal, or the regulators enthusiastically pushing for its consideration.
The OSC said it agrees that retail investors need to be attuned to the effects of inflation, which is where investment advisers come in. “Professional advice requires an assessment of risk tolerance and risk appetite in order for an adviser to know their client, including the effect of the cost of living on achieving their financial objectives,” OSC spokesman Andy McNair-West said in an e-mail.
And yet, Mr. Fell said, the need exists for more formal reporting of inflation-adjusted performance.
Inflation often goes overlooked by the industry and investors alike. It can be seen in the celebration of stock indexes at all-time nominal highs, which wouldn’t look so great if inflation were factored in.
The inflationary extremes of the 1970s provide a stark illustration. In 1979, the S&P 500 index posted a total return of 18.5 per cent – a blockbuster year until you consider that inflation was 13.3 per cent.
That took the index’s real return down to a lacklustre 5.2 per cent.
More recently, investors in Canada and the United States piled into savings instruments promising 5-per-cent nominal rates of return. But the rate of inflation in Canada averaged 6.8 per cent in 2022, more than wiping out the return on things such as guaranteed investment certificates, in most cases.
“A lot of people don’t connect those dots,” said Dan Hallett, head of research at HighView Financial Group. “Over 10 years, even 2-per-cent inflation really eats away at purchasing power.”
He worries, however, that reporting after-inflation returns may confuse average investors, many of whom still fail to understand the basic investment fees they’re paying.
All the more reason to get Canadian investors thinking more about inflation, Mr. Fell argues.
“The impact of inflation on investing is sort of forgotten about,” he said. “The only way I can think of turning that around is to highlight it in investors’ statements.”
Capital gains tax hike a sure way to repel the tech sector
Published Apr 18, 2024 • Last updated 23 minutes ago • 4 minute read
If there’s an uncomfortable economic lesson of the past few years, it’s this: The vibes matter.
As much as economists point to data, the reality in politics and policy is that public expectations and perceptions are important too. And from a business perspective, the vibes of the 2024 federal budget are rancid.
Article content
The budget document’s title is “Fairness For Every Generation” and in practice, what that meant was a “soak the rich” tax hike on capital gains.
Advertisement 2
Article content
You can see how this looked like good politics. In her budget speech, Finance Minister Chrystia Freeland said that only 0.13 per cent of Canadians with an average annual income of $1.4 million will pay higher taxes — hardly a sympathetic lot, at a time when many Canadians are struggling to pay for food and housing.
The problem is that the proposed capital gains tax hike won’t only soak a handful of rich Canadians as advertised. In its current design, it broadly punishes individuals and families of small business owners, tech entrepreneurs, dentists and countless others who have often spent decades trying to build their businesses for a potential once-in-a-lifetime capital gains event. Together, our analysis suggests that those people represent closer to 20 per cent of Canadians.
This tax proposal simply amounts to a systemic tapping on the brakes on the investment in a productive and prosperous future, being made by innovative, hardworking Canadians. And it does so at the very time Canada needs them to accelerate their investing.
But among the innovators and business leaders I talk to in the Canadian tech sector, this week’s budget was a chilling shock. There is a sincere and widespread belief that if something does not change, the budget will do widespread and irreparable damage to Canada’s tech sector.
Platformed
Article content
Advertisement 3
Article content
That’s why more than 1,000 CEOs have signed a public letter to Prime Minister Trudeau and Deputy Prime Minister Freeland at ProsperityForEveryGeneration.ca, calling on the government to stop this tax hike. Innovators understand what’s at stake.
Firstly, we are at a moment when capital is harder to access than at any time in the past generation. Higher interest rates and economic uncertainty mean that many high-growth companies with innovative products struggle to secure growth capital on favourable terms.
South of the border, we’re seeing strong growth, driven by significant government investment through strong industrial policy, alongside significant growth in bleeding-edge artificial intelligence applications. The U.S. is an exciting place to invest right now.
And capital is highly mobile. If Canada is seen as an unfriendly place to invest, due to high taxes, investors will simply take their money elsewhere, and propel the growth of promising tech companies in other countries.
What’s more, highly skilled talent is more mobile than ever before, and among innovative high-growth companies, stock options — subject to capital gains tax — are a key form of compensation.
Advertisement 4
Article content
We’re not talking purely about CEOs and tech founders here either. The dedicated early players of a promising tech startup earn their stock options with sweat equity. Their dedication, taking a risk in the prime of their career, is often the key ingredient for the success of future innovation champions.
Innovators are intimately aware of these concerns, because this isn’t the first time the Liberal government has tried to tax stock options. Nearly a decade ago, they promised to hike taxes on stock options in their 2015 campaign platform, and it took years of public advocacy from tech leaders to help the government understand the potential unintended damage that a reckless tax hike could do on the ability to attract and retain talent.
All along the way, we were assured by the government that they knew what they were doing, and there was nothing to worry about. In truth, after many frank conversations, they changed course.
In the days and weeks ahead, I’m expecting to hear the same kind of thing again. Already we’ve heard from government officials pointing to the “Canadian Entrepreneurs’ Incentive” carve-out, which will soften the blow of higher capital gains tax rates overall. The details of this carve-out are not yet fully clear, and it’s possible that the government will tinker with the thresholds to help mitigate the damage of a tax hike on capital gains.
Advertisement 5
Article content
But the reality is that without a significant change in messaging, the danger to Canada’s economy is real.
Capital gains are taxed at a different rate because they are taxes on investment. Every investment comes with risk; you are not guaranteed to make a profit. The tax code takes this into account.
If the vibes are off, and the global perception of Canada is that we’re not a place where the investment risk is worth it, because the federal government is just going to tax you to death, then we simply won’t see capital or talent flow to Canada.
Innovation and entrepreneurship are about hope. You fundamentally need to be an optimist to risk it all, and invest yourself in growing a business. Right now, Canada’s federal government is not sending a hopeful vibe. And the vibes matter.
Benjamin Bergen is president, Council of Canadian Innovators.
Article content
‘If I try to put myself back into the shoes of me as a 21-year-old, all I can tell you is this: I was hungry,’ writes Gary Stevenson in his recently released memoir, The Trading Game, which tells the story of how the son of a Post Office worker briefly became the highest-paid trader working on Citi’s bond trading floor at London’s Canary Wharf. He sits down with host Claer Barrett to talk about what he learned about trading and how the wider economy works – and why he’s worried.
Find Gary @garyseconomics on YouTube, X, Facebook, Instagram and TikTok. Read Gary Stevenson’s recent FT Magazine profile by Miles Ellingham.
For more tips on how to organise your money, sign up to Claer’s email series ‘Sort Your Financial Life Out With Claer Barrett’ at FT.com/moneycourse.
If you would like to be a guest on a future episode of Money Clinic, email us at money@ft.com or send Claer a DM on social media — she’s @ClaerB on X, Instagram and TikTok.
Want more?
Check out Claer’s column, The hunt for good value UK stocks.
Listen to more episodes, such as Investment Masterclass: An insider’s view of the City of London, Investment masterclass: what’s one of the world’s leading investors buying?, and more.
Presented by Claer Barrett. Produced by Tamara Kormornick. Our executive producer is Manuela Saragosa. Sound design by Breen Turner, with original music from Metaphor Music. Cheryl Brumley is the FT’s global head of audio.
Cytiva Showcases Single-Use Mixing System at INTERPHEX 2024 – BioPharm International
Supervised consumption sites urgently needed, says study – Sudbury.com
Jeremy Hansen – The Canadian Encyclopedia
Canada's 2024 budget announces 'halal mortgages'. Here's what to know – National Post
2024 federal budget's key takeaways: Housing and carbon rebates, students and sin taxes – CBC News
New EV features for Google Maps have arrived. Here’s how to use them. – The Washington Post
Giant, 82-foot lizard fish discovered on UK beach could be largest marine reptile ever found – Livescience.com
UK Mulls New Curbs on Outbound Investment Over Security Risks – BNN Bloomberg
Comments