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Thank you Venkatesh.
I listened to parts of that video (only 475 views seems surprising by the way). The QnA section was interesting - I am not sure if the CEO is answering the actual questions at all - but does talk a lot and keep repeating the same things over and over.
I do not have much experience with investor calls, so I am curious how others out here have perceived this. I am also not sure if it is common to hide names of Fortune 500 clients (refer to question around 1:23:00 onwards - with reference to ‘tech giants’.)
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As per management’s press release, over 2200 people have participated live yesterday.
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Few weeks back after Q4 results , I could see this sponsored ad in FB, why a company is advertising their result in FB?
Today one of my friend shared this pic of CEO where is again emphasising on good results and again it’s a promoted post.
How should we take these? Something to be concious?
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There was a block deal today. Banyan sold and SBI MF and Smallcap world fund purchased 5 and 4.6 lacs shares respectively.
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Hi Bhaskar,
Nice write up. Much of the stuff seems to be from the investor presentation right?
I have a couple of questions:
- Isnt there a missed opportunity by not getting on to the RCS bandwagon?
- Twilio coming to India would be a threat to Tanla wouldnt it?
- CEO did not provide any guidance for revenue for the next qtr/ year.
- Though Wisely seems to be innovative, will it be a game changer?
What are your thoughts on these risks
I felt the same. Constant repetition of pretty much the same thing
would recommend investors to read their fy20 annual report.
just 4 pages in and it has more holes than a sieve.
no position
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Would be great if you could elaborate what gaping holes are you talking about?
numbers dont add up. says 366cr utilized but adding up numbers from next paragraph shows 369cr
CEO misleads investors. revenue growth came from acquisitions, here he makes it seem that it was the standalone company.
Also, ebitda went from 97cr to 241cr on consolidated basis. ebitda from standalone company was 72cr which means acquisitions covered the rest, meaning ebitda from acquisitions = 169.
tanla bought a tech company with ebitda of 169cr for 400cr, very hard to believe
didnt know acquisitions were part of organic growth
could go on and on…
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From latest annual report:
From 2018 annual report:
Tangible assets are down 10x(even with acquisitions), while goodwill and intangibles have gone up. Goodwill and intangible assets can be depreciated slower, boosting P&L and return ratios.
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Seeing a lot of Negative Posts about the company so thought of posting my opinion:
- I am expecting better clarity from their Annual Reports from the CY on the numbers to the wordings since they just got a new CFO. Someone had posted about the growth coming from the standalone co vs Consolidated entity but the fact is that it is just error in the wordings.
- Ads - This is the one thing even I don’t understand as to why they advertise their profit or revenue growth instead of their platform businesses.
- Karix and Gamooga actually do have a great potential and market share in India. Similarly, their strategy for launching these platforms abroad also seems lucrative. As for their Wisely Platform that is something to be seen as to how well they integrate all their services as they envisioned in their con call.
- Goodwill - Now, Goodwill will clearly be generated when they acquire companies and this will be capitalised as per GAAP. As for buying a tech company with ebitda of 169 cr for 400 cr, doesn’t it seem perfectly reasonable. Honestly, consider the current valuations of any software services company and from that perspective this valuation seems perfectly reasonable. If we go back 10 Years, then maybe this valuation would be considered high, since, this sector has just in the recent past come mainstream.
- From their recent corporate announcements, they seem to have got a few patents and also just incorporated a new subsidiary namely Tanla Digital Labs which as per the announcement is for the development of platforms and software solutions.
Personally, I am bullish on the entity and the entire CPaaS sector in general.
Yes, I agree they seem to have had some discrepancies with their management reporting in the past, however, everything changes with time and I feel that the new CFO would certainly boost and help in this matter. Along with that they recently appointed Deloitte as their internal auditors as well.
That said, any person looking to invest in Tanla (or any company for that matter) should consider everyone’s views here (and elsewhere) and form your own opinion on the company prior to making the investment decision.
Disclosure: Invested
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Recent entry of SBI nd smallcap fund with existing MIT investment surely builds confidence. They must have done their homework before entering. Agreed, New CFO should clear doubts generating red signals.
Disclosure: Tracking with small investment.
This is 10 year old news
Why so old posts are being circulated
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Very well articulated. I do not have much knowledge of the history, but if the company is now trying to be more visible and engaging with investors that is a positive sign. I will have to give some benefit of doubt to the repetitive statements by the CEO (and somewhat lack of substance and a bit of evasiveness).
Everyone has strenghts and weaknesses. The addition to the management team generally is positive. But only time will tell.
Disclaimer: My small position is from Rs. 14. Looking for exit at some point.
Tanla has posted good set of Q1 numbers and management sounded very positive once again on the growth ahead. In spite of huge cash on the books only 65 cr was allocated for buy back, suggesting that they would keep the cash for expansion (organic/inorganic).
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Outstanding Q2 results by Tanla. Consolidated revenues and profits have grown Q-o-Q and Y-o-Y basis. EPS for the quarter has been Rs.10.04 versus 5.85 last year and 7.68 previous quarter.
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Tanla Q2 Corporate presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/6c99ab4c-304e-4e3f-993d-ee0e44e7e313.pdf
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Just came across an interesting series where-in Tanla was named. Worth reading all the parts (1, 2, 3, 4, 5 and may 6th expected soon) who is interested in gaining some great insights about the CpaaS industry and the massive opportunity lying ahead for Tanla.
Discl: Invested.
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