Tanla Platforms Limited — Important, 21-01-2025: Updates

Revenue for Q3 FY25 stood at ₹10,004 Mn, slightly declining by 0.2% QoQ. The Digital Platforms segment grew by 8.6% QoQ to ₹955 Mn, showcasing effective scaling and demand for 'Messaging as a Platform' (MaaP), particularly in RCS communications, which saw a historic delivery of one billion messages in a month. In contrast, revenue from Enterprise Communications decreased by 0.2% QoQ to ₹9,049 Mn, affected by pricing pressures in domestic SMS and softness in the ILD market.

Gross profit moderated to ₹2,607 Mn, reflecting a gross margin of 26.1%. EBITDA trended down to ₹1,634 Mn, with an EBITDA margin of 16.3%, impacted by increased talent acquisition costs and forex fluctuations. Net profit after tax decreased by 9% QoQ to ₹1,185 Mn, translating to earnings per share of ₹8.82.

The company's cash balance reached ₹9,208 Mn with strong free cash flow generation of ₹2,165 Mn, highlighting robust financial health. With continuous investment in OTT channels and the recognition as Google’s ‘RCS Growth Partner of the Year,’ Tanla is well-positioned for strategic growth. Investors should maintain a positive outlook given these developments, with a focus on operational scaling and digital transformation initiatives.