Tanla Platforms Ltd · NSE:TANLA
Tanla Platforms — Q1 FY2022 Earnings Presentation
40 slides from Tanla Platforms's earnings presentation, July 2021
Slide 1: The world's leading brands trust Tanla
The world’s leading brands trust Tanla Q1 21-22
Slide 2: Safe Harbor
Safe Harbor The CPaa$ business is evolving at a fast pace in India with very little information available in the public domain on the overall market. The financial community has always sought a response on the total market size, key drivers of the industry and the competitive landscape in this space
Slide 3: State of the business: leading innovation, growth and value creation
State of the business: leading innovation, growth and value creation High Growth Best in Class Accelerated Innovation Enterprise segment market leader margins and free cash flow profile TRUBLOQ • • 30%+ 4x 8x • • • CPaaS Market leader in India 9/10 8/10 7/10 9x 1004 800B 42% 62% 1300 60%+ 883 815 41
Slide 4: Stellar start into the year
Stellar start into the year Key financial metrics Revenue Gross Margin EBITDA EPS Cash conversion Cash (₹ Million) (₹ Million) (₹ Million) (₹) (₹ Million) (₹ Million) 6,264 7,171 4,555 1,735 1,345 1,375 7.68 38 1,053 5.16 2,470 750 65 49 79 +190% 271 +408% Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-2
Slide 5: Customer Updates
CUSTOMER UPDATES OO06dCU0OoOdUCODWUCODUDWUOlUCOlUD O O8 8B OO OSB BB OU ODO O0O O00 8B ODA DO 0 0 O00 08 00 00 0 0 O00 0O 00 8 0 0 ee ee ee |
Slide 6: Wisely platform helps Axis Bank with customer data privacy and security
Wisely platform helps Axis Bank pave the way for true customer data privacy and security • Blockchain based end-to-end secured messaging platform • Customer trust & confidence. My bank My Message. • Transparent – Verified, Zero dispute reports • As-a-Service model – Scalable and reliable 6
Slide 7: Life science company unlocks SMS communication for millions of farmers
One of the largest life science company unlocks SMS communication for millions of farmers with Tanla Right crop information and products using interactive SMS links in multiple languages 7 7
Slide 8: Trubloq: blockchain based communication stack for telecom
Ground-breaking innovation for the telecom industry, powered by blockchain based communication stack TRUBLOQ • Over 44,000 enterprises are now using Trubloq solution; 2 million content templates registered • Enabled 5 out of 7 telecom operators in India with 62% market share of all scrubbed messages
Slide 9: How Panasonic improves customer care with Karix and WhatsApp
“A better life, A better World” – How Panasonic improves customer care with Karix and WhatsApp • Automated conversational solution for product and service-related inquiries • 2-way communication between brand and the user, in language of choice • Solution helped Panasonic deflect 10% inquires to Wha
Slide 10: IFFCO Tokio deployed Karix smart messaging analytics
IFFCO Tokio deployed Karix smart messaging analytics to promote their policies to 3 Mn farmers across India Resulted in 8x increase in farmer engagement 10 10
Slide 11: Paisa Bazaar uses Gamooga Omni channel marketing platform
Paisa Bazaar uses Gamooga Omni channel marketing platform with 8X increased conversions Personalized omni-channel campaigns 11
Slide 12: Online beauty brand uses Gamooga Re-targeting solution
Large online beauty brand uses Gamooga Re-targeting solution to convert anonymous visitors to registered users • Personalized sign-up forms enabled for capturing details of site visitors based on their product browsing history • Displayed personalized banners to these users with targeted offers • Re
Slide 13: Karix enabled Axis Bank with conversational branchless banking SMS
Karix enabled Axis Bank with conversational, branchless banking SMS solution • Eliminated need for visiting branch or filling a form to renew term deposits • Simple solution offered over interactive SMS, removing the need for senior citizens to download any app • Increased Axis Bank’s term deposit c
Slide 14: Revenue grew across all customer segments
Revenue grew across all customer segments (₹ Million) 6,077 Customers with revenue > ₹500 3,484 +42% million contributed 56% in Q1 21-22 1,843 4,287 as against 44% in Q1 20-21 +76% 751 +14% +9% 1,984 1,613 691 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 >₹10M- < ₹100M >₹1
Slide 15: Customer addition in all segments
Customer addition in all segments (No of customers) 146 • 146 customers with 99 +28% revenue of > ₹10M+ up +21% 114 82 from 114 customers in Q1 34 +31% 20-21 26 13 +117% • 13 customers with revenue 6 > ₹500M up from 6 in Q1 20-21 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-2
Slide 16: Average revenue for >₹10M customers is increasing
Average revenue for > ₹10M customers is increasing (₹ Million) Average revenue per customer 42 contributing >₹10 million is at +11% ₹ 42 million for the quarter, up 11% 38 from Q1 20-21 Q1 20-21 Q1 21-22 Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by
Slide 17: Continue to expand our customer base
Continue to expand our customer base (₹ Million) In Q1 21-22, we added 73 new customers In Q1 21-22, revenue from new customers is as against 65 additions in Q1 20-21 ₹ 28 million as against ₹ 17 million in Q1 20-21 73 28 +12% +70% 17 65 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 New customers include ever
Slide 18: Reducing client concentration
Reducing client concentration (₹ Million) Revenue from our top 20 customers Customer concentration of our top 20 is increasing customers as a % of total revenue is decreasing 600 72% 4,148 70% +31% 400 3,173 68% 200 66% - 64% Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Revenue Percentage of revenue 18
Slide 19: Financial Update
FINANCIAL UPDATE
Slide 20: Operating above Rule of 40
Operating above Rule of 40 (₹ Million) 60% 40% 45% 37% • SaaS companies target to 31% operate at Rule of 40 (revenue 38% growth + EBITDA%) • Operated at Rule of 40 in Q3 20- 24% 21 and moved to Rule of 60 in Q1 20% 21% 21% 22% 19% 21-22 organically 16% 17% 15% • Innovation led strategy helping accel
Slide 21: Accelerated revenue metrics reflecting industry leadership
Accelerated revenue metrics reflecting industry leadership (₹ Million) 20% 21% 24% 38% 15% • Improving growth trajectory every 6,541 6,486 6,264 quarter over the past five quarters 5,832 from 15% in Q1 20-21 to 38% in Q1 21-22 4,555 • Growth driven from one geography – India. Maintaining leadership
Slide 22: Gross Margin Development – at 27.7%
Gross Margin Development – at 27.7% (₹ Million) • Gross Margin growth at 65% YoY 65% 55% 58% 37% 36% • Gross margin has improved 460 bps YoY in Q1 21-22 1,769 1,735 1,611 27.3% 27.7% • Platform business gross margin 1,343 24.6% contribution to total at 31% in Q1 1,053 23% 21-22 as against 17% in Q1
Slide 23: Gross margin profile shift towards platform
Gross margin profile shift towards platform 17% 23% 25% 31% 28% 72% 75% 69% 83% 77% Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Enterprise business Platform business • Platform business gross margin at ₹ 533 • Platform business gross margin contribution million in Q1 21-22, up 204% from Q1 20-21 to
Slide 24: Increased conversion of Gross Margins into EBITDA
Increased conversion of Gross Margins into EBITDA (₹ Million) • Driving strong operating leverage 71% 73% 79% 76% 78% on indirect cost- reduction of 630 bps YoY 1,769 1,735 • Employee cost at 15% of gross 1,611 1,343 1,345 margin in Q1 21-22, as against 19% 1,269 1,340 in Q1 20-21 1,053 975 750 • Ot
Slide 25: EBITDA levels at all time high
EBITDA levels at all time high (₹ Million) 210% 140% 129% 99% 79.4% • EBITDA growth of 79% YoY 1,340 1,345 1,269 20.7% 21.5% 19.4% 975 750 16.7% 16.4% Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 EBITDA EBITDA margin YoY growth 25
Slide 26: EBIT doubled in a year
EBIT doubled in a year (₹ Million) • EBIT has improved 610 bps YoY in Q1 21-22 1,248 1,254 1,180 • EBIT growth of 97% YoY 19% 20% 15% 876 • Cloud focused strategy resulting in 635 lower depreciation. Depreciation at ₹ 15% 91 million in Q1 21-22, as against ₹ 115 14% million in Q1 20-21 Q1 20-21 Q2 2
Slide 27: 100% + cash conversion for four quarters in a row
100% + cash conversion for four quarters in a row (₹ Million) 2,252 • Operating cash flow ₹ 1375 million in Q1 21-22, up 408% 1,663 177% 1,340 1,424 1,345 1.375 from Q1 20-21 171% 1,269 106% 102% 975 • Cash conversion at 102% for 750 Q1 21-22 36% 271 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 EBIT
Slide 28: Cash balance at all time high
Cash balance at all time high (₹ Million) CCE 7,717 5,841 Cash & cash equivalents at ₹ 7,171 4,493 million in Q1 21-22 as against ₹ 2,470 2,339 2,470 million, up 190% from Q1 20-21 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 3,698 CCE composition 2,786 2,139 2,167 1,883 1,876 1,361 1,009 843 614 47
Slide 29: Net profit at all time high
Net profit at all time high (₹ Million) 1,025 1,045 17% 935 16% • Second consecutive quarter of 786 815 14% ₹ 1000 million+ Net profit 17% 14% • Net profit at ₹ 1,045 million in Q1 21-22, up 33% from Q1 20-21 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Net profit Net profit margin 29
Slide 30: EPS at all time high
EPS at all time high (₹) 7.68 7.54 6.87 5.85 5.16 • Earnings per share at ₹ 7.68 in Q1 21-22, up 49% from Q1 20-21 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 30
Slide 31: Efficient working capital management
Efficient working capital management (₹ Million) • Debtor days at 58 in Q1 21-22 Net working capital including Net working capital excluding CCE CCE as against 59 days in Q1 20-21 6,657 1,714 • Operating at negative working capital for two consecutive 4,184 quarters (514) Q1 20-21 Q1 21-22 CCE- Cash
Slide 32: ROCE at 169%, all time high
ROCE at 169%, all time high • ROCE at 169% excluding cash ROCE (excluding CCE) ROCE( including CCE) • Reflects cloud focused innovation led business model 169% 50% 31% 45% Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 ROCE- Return on capital employed CCE- Cash & cash equivalents 32
Slide 33: Capital allocation of FY'20 & FY'21
Capital allocation of FY’20 & FY’21 ₹ 3,885 Million Karix and Gamooga acquisition ₹ 1,661 Million Buy back of shares ₹ 692 Million Capex largely on Trubloq & Wisely platforms ₹ 136 Million Dividend ₹ 7,171 Million Cash & cash equivalents 33 Capex includes spend for Q1 21-22 and CCE balance is as of
Slide 34: Strong balance sheet
Strong balance sheet ₹ 9,996 Million Strong reserves & surplus ₹ 7,171 Million Robust build up of cash & cash equivalents 169% ROCE (excluding cash & cash equivalents) Debt free Asset lite Net block of ₹ 1,278 Million 34
Slide 35: Key initiatives
Environmental Social and Governance Environmental Social Governance ESG pillars Resource sustainability Equal opportunity Integrity in conduct Creating resource efficiency for a Make work more equitable and Governance risk and compliance greener and cleaner tomorrow rewarding for people integrated i
Slide 36: Appendix
The world’s leading brands trust Tanla Appendix
Slide 37: Profit and Loss account: First Quarter 21-22
Profit and Loss account: First Quarter 21-22 In millions, unless otherwise stated Q1 20-21 Q1 21-22 ∆% Revenue from operations 4,555 6,264 38 Cost of Services (3,502) (4,529) 29 Gross Margin 1,053 1,735 65 Operating expenses (303) (389) 28 EBITDA 750 1,345 79 Depreciation & amortization (115) (91) (
Slide 38: Free cash flow up 414% YoY
Free cash flow up 414% YoY In millions, unless otherwise stated Q1 20-21 Q1 21-22 ∆% Operating cash flow 271 1,375 +408% Capital expenditure (21) (91) +339% Free cash flow 250 1,284 +414% Free cash flow in percent of total revenue 5% 20% +1501bps Free cash flow conversion rate 33% 95% +6215bps 38
Slide 39: Key metrics: First quarter 21-22
Key metrics: First quarter 21-22 Gross Margin EBITDA PAT EBITDA to cash Gross margin to ROCE conversion EBITDA conversion +460bps +501 bps -60bps +6610 bps +630 bps +12500 bps 27.7% 21.5% 17% 102% 78% 169% Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 20-21 Q1 21-22 Q1 2
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