Tanla Platforms Ltd · NSE:TANLA
Tanla Platforms — Q2 FY2022 Earnings Presentation
40 slides from Tanla Platforms's earnings presentation, Oct 21, 2021
Slide 1: The world's leading brands trust Tanla
The world’s leading brands trust Tanla Q2 21-22 Investor Update October 21, 2021
Slide 2: Safe Harbor
Safe Harbor The CPaaS 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 • 3 patents awarded • World’s first block chain 30%+ 4x 8x • Co-sell partnership with Microsoft • enabled
Slide 4: Acceleration across all dimensions
Acceleration across all dimensions Key financial metrics Revenue grew 44% EBITDA grew 83% PAT grew 67% EPS grew 72% year-over-year to year-over-year to year-over-year to year-over-year to ₹8,416 million. ₹1,787 million. ₹1,362 million. ₹10.04. ₹ 9,200 ₹ 2,000 8,416 1,787 ₹ 1,440 1,362 ₹ 12 ₹ 8,200 ₹
Slide 5: Platform Updates
PLATFORM 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: CPaaS platform offering a digital marketplace for enterprises and suppliers
CPaaS platform offering a digital marketplace for enterprises and suppliers, with a global edge-to-edge network delivering private, secure and trusted experiences Closed two new partnerships on Wisely Platform. 3 major features have been released in the platform • Enhanced behavioral marketing insig
Slide 7: TRUBLOQ
TRUBLOQ Largest blockchain platform in the world in-terms of scale, transactions, and capacity. Protecting billion+ mobile subscribers from unsolicited commercial communication including spam & fraud • • *Increase by 1% from last quarter 30.0 No of transactions (bn per month) 25.0 20.0 15.0 10.0 5.0
Slide 8: 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 9: Mahindra Construction launches "Hello Machine" as a Whatsapp digital support program
Mahindra Construction launches “Hello Machine” as a Whatsapp digital support program • Automated complaint management for customers and field staff across India • 5X operational efficiency in complaint logging & manual rework • 10x reduction in time to resolve complaints end to end
Slide 10: CDSL adopts scalable and omnichannel APIs to process large volume of SMS & Emails
CDSL adopts scalable and omnichannel APIs to process large volume of SMS & Emails to deliver regulatory communication to its customers • Seamless processing of high volumes meeting stringent regulatory deadlines • Simplified tracking & analytics with customized reporting panel as per CDSL’s internal
Slide 11: Fast growing EdTech business deploys WhatsApp Business API
One of the fastest growing EdTech businesses in India deploys WhatsApp Business API to engage their audience • Created user-to-brand engagement capsules • 8x increase in number of users engaging with the brand • 60% Reduction in block rates using hyper personalization, context and content 11
Slide 12: Expanding existing customer relationships
Expanding existing customer relationships (₹ million) • Customers with revenue > ₹10M+ 8,188 have grown 46% year-over-year +46% • Customers with revenue > ₹500M 5,382 5,592 contributed 64% in Q2 21-22 as +73% against 53% in Q2 20-21 1,824 3,103 +5% 982 +31% 747 1,742 Q2 20-21 Q2 21-22 Q2 20-21 Q2 21
Slide 13: Our large customers have grown even larger
Our large customers have grown even larger (No of customers) 175 +29% • 175 customers with annual revenue of > ₹10M+, up from 136 +31% 127 136 customers in Q2 20-21 97 • 19 customers with revenue 29 29 +90% 19 >₹500M, up from 10 in Q2 20-21 10 Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 Q2
Slide 14: Average revenue for >₹10M customers continues to grow
Average revenue for > ₹10M customers continues to grow (₹ million) 47 +14% Average revenue from ₹10M+ 41 customers at ₹ 47 million, growth of 14% YoY Q2 20-21 Q2 21-22 Customer segments are arrived at on a quarterly annualized basis (quarter revenue multiplied by four) 14
Slide 15: Healthy additions of new customers
Healthy additions of new customers (₹ million) In H1 21-22, we added 160 new Revenue from new customers for H1 21-22 customers as against 153 at ₹ 170 million as against ₹ 168 million in additions in H1 20-21 H1 20-21 168 +0.9% 170 160 +5% 153 H1 20-21 H1 21-22 H1 20-21 H1 21-22 New customers includ
Slide 16: Diversification of customer base
Diversification of customer base (₹ million) Revenue from our top 20 customers Top 20 customer concentration as a % is increasing of revenue is decreasing 5,504 72% 70% +35% 4,090 68% 66% 64% 60% Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 Revenue Percentage of revenue 16
Slide 17: Financial Update
FINANCIAL UPDATE
Slide 18: Operating above Rule of 40
Operating above Rule of 40 • SaaS companies target to 32% 36% 41% 45% 60% 65% operate at Rule of 40 (revenue growth + EBITDA%) 44% 38% • Operated at Rule of 60 for second consecutive quarter- 65% 24% 22% 20% 21% 21% 21% 19% 16% 15% 16% Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Revenue EB
Slide 19: Turbo charged revenue growth
Turbo charged revenue growth (₹ million) 44% 38% • Improving year-over-year growth 20% 21% 24% trajectory every quarter for the past 6 15% 8,416 quarters 6,541 6,486 6,264 • Growth driven by increase in volumes 5,832 from existing customers, new customer 4,555 addition and new use cases • Growth led
Slide 20: Gross profit growth accelerating every quarter
Gross profit growth accelerating every quarter (₹ million) 55% 58% 65% 71% 37% 36% • Gross Profit growth of 71% YoY 2,302 27.4% • Gross margin % has improved 440 1,769 1,735 basis points year-over-year 1,611 27.3% 27.7% 1,343 24.6% 1,053 23.0% • Platform business gross margin 23.1% contribution to t
Slide 21: Gross margin mix
Gross margin mix 17% 23% 25% 31% 25% 28% 72% 75% 69% 83% 77% 75% Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 • Platform business gross margin at ₹ 578 • Platform business gross margin contribution million in Q2 21-22, up 85% from Q2 20-21 to total at 25%, improved by 181 bps YoY • Enterpri
Slide 22: Improving efficiency metrices
Improving efficiency metrices (₹ million) 79% 78% 78% • Driving strong operating leverage 76% 73% on indirect cost- reduction of 500 71% basis points year-over year as % 2,302 of Gross profit 1,769 1,735 1,787 1,611 • Salary cost at 14% of gross margin 1,343 1,269 1,340 1,345 in Q2 21-22, as against
Slide 23: Strong EBITDA growth
Strong EBITDA growth (₹ million) • EBITDA growth of 83% year-over-year 210% 140% 99% 129% 79% 83% • EBITDA has improved 452 basis points year-over-year 1,787 • Salary cost has gone by ₹ 102 million 21.2% YoY, driven by salary increases and new 1,269 1,340 1,345 additions. We added net 142 employees
Slide 24: EBIT grew by 92% YoY
EBIT grew by 92% YoY (₹ million) 1,683 20.0% • EBIT has improved 497 basis 1,248 1,254 points year-over-year 1,180 19.2% 20.0% 18.0% 876 15.0% 635 13.9% Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 EBIT EBIT margin 24
Slide 25: Best in class free cash flow profile
Best in class free cash flow profile (₹ million) • Free cash flow at ₹ 2,217 million in 2,147 2,217 Q2 21-22, up 45% from Q2 20-21 1,534 1,361 1,285 250 Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 Free cash flow 25
Slide 26: Cash & cash equivalents
Cash & cash equivalents (₹ million) CCE • 38% of our cash balance is in 7,171 8,457 5,841 dollar account earning no 4,493 interest 2,470 2,339 • Current account balance is high Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 due to month end collections. To 4,055 optimize the working capital C
Slide 27: Cash & cash equivalents break up
Cash & cash equivalents break up Current Current Fixed Restricted In million, unless otherwise stated Total accounts-INR accounts-USD Deposits cash HDFC Bank 483 88 2,682 351 3,604 HDFC Limited - - 1,000 - 1,000 LIC Housing Limited - - 200 - 200 State Bank of India 4 - 168 3 175 Axis Bank 20 - 1 - 2
Slide 28: Profit after tax grew by 67%
Profit after tax grew by 67% (₹ million) 1,362 16.2% • Profit after tax at ₹ 1,362 million in 1,025 1,045 Q2 21-22, up 67% from Q2 20-21 935 15.8% 16.7% 786 815 14.3% 14.0% 17.3% Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 28
Slide 29: Double digit EPS
Double digit EPS (₹) 10.04 7.54 7.68 • Earnings per share at ₹ 10.04 in 6.87 5.85 Q2 21-22, up 72% from Q2 20-21 5.17 • EPS accretion is on account of increase in profit after tax and benefited by buyback Q1 20-21 Q2 20-21 Q3 20-21 Q4 20-21 Q1 21-22 Q2 21-22 29
Slide 30: ROCE at 247%
ROCE at 247% (₹ million) • ROCE at 247% excluding cash ROCE (excluding CCE) ROCE( including CCE) • Reflects cloud focused innovation led business model 54% 42% H1 20-21 H1 21-22 H1 20-21 H1 20-21 ROCE- Return on capital employed CCE- Cash & cash equivalents 30
Slide 31: Strong balance sheet
Strong balance sheet ₹ 10,421 million Strong equity and reserves ₹ 8,457 million Robust build up of cash & cash equivalents 247% ROCE (excluding cash & cash equivalents) Debt free 31
Slide 32: ESG achievements in Q2 21-22
ESG achievements in Q2 21-22 Environmental Social Governance Steps towards creating a greener and Giving back to the society and developing Integrating ESG in our business and formally cleaner tomorrow our employees committing to ESG principles Towards Net-zero For our employees Transparency & Good
Slide 33: ESG targets in Q3 21-22
ESG targets in Q3 21-22 Environmental Social Governance Steps towards creating a greener and Giving back to the society and developing Integrating ESG in our business and formally cleaner tomorrow our employees committing to ESG principles Towards Net-zero For our employees Transparency & Good Gover
Slide 34: Appendix
The world’s leading brands trust Tanla Appendix
Slide 35: Profit & Loss account: Second Quarter & H1 21-22
Profit & Loss account: Second Quarter & H1 21-22 In ₹ million, unless otherwise stated Q2 21-22 Q2 20-21 ∆% H1 21-22 H1 20-22 ∆% Revenue from operations 8,416 5,832 44 14,680 10,388 41 Cost of services (6114) (4,489) 36 (10,643) (7,992) 33 Gross profit 2,302 1,343 71 4,037 2,396 68 Operating expense
Slide 36: Balance sheet - September 30, 2021
Balance sheet- September 30,2021 In million, unless otherwise stated Sep 30, 2021 Sep 30, 2021 In ₹ million, unless otherwise stated Sep 30, 2021 Sep 30, 2021 (Unaudited) (Unaudited) (Unaudited) (Unaudited) EQUITY AND LIABILITIES ASSETS Equity share capital 135 136 Non-current assets Other equity 10
Slide 37: Condensed Cash flow statement
Condensed Cash flow statement In ₹ million, unless otherwise stated Q2 21-22 Q1 21-22 Cash flow before changes in working capital 1,836 1,381 Changes in working capital 846 137 Cash generated from operations 2,682 1,518 Taxes (326) (142) Cash flow from operating activities 2,355 1,375 Net investment
Slide 38: Free cash flow up 45% YoY
Free cash flow up 45 %YoY In ₹ million, unless otherwise stated Q2 21-22 Q2 20-21 ∆% Operating cash flow 2,356 1,663 +38% Capital expenditure (139) (129) +7% Free cash flow 2,217 1,534 +45% Free cash flow in percent of total revenue 26% 26% - Free cash flow conversion rate 124% 157% - 38
Slide 39: Key metrics: Second quarter 21-22
Key metrics: Second quarter 21-22 Gross Profit EBITDA PAT Gross Profit to ROCE EBITDA conversion (excluding CCE) +440bps +452 bps +221bps +501 bps +18374 bps 27.4% 21.2% 16.2% 77.6% 247% Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 Q2 20-21 Q2 21-22 39
Slide 40: Investor Contact
Investor Contact: Ritu Mehta Director- Investor relations [email protected] 40