Tanla Share Price Hit 4-Month Low on Disappointing Earnings, Recover from Lows

Tanla Share Price Hits Four-Month Low

Tanla Platforms witnessed a sharp decline in its share price, slipping to a four-month low of Rs 800.3 on the NSE. This fall came after the company’s consolidated profit after tax (PAT) for Q2FY25 declined nearly 9% year-on-year (Y-o-Y). However, the stock managed to recover from its intraday low and was trading at Rs 823.90, down 3.86%.

Earnings Report Overview

In the quarter ending September 30, 2024, Tanla Platforms reported a consolidated net profit of Rs 130.2 crore, compared to Rs 142.54 crore in the same period the previous year, reflecting a 9% decline. The company’s revenue for the quarter was Rs 1,000.7 crore, down slightly by 0.78% from Rs 1,008.6 crore a year ago. Its total income stood at Rs 1,011 crore, marking a 0.38% Y-o-Y decline.

Key Business Highlights

Despite these numbers, the company made progress in other areas. Tanla added 35% of its new customers via WhatsApp, showcasing its growing product penetration. Product penetration improved to 2.37 from 2.17 in Q1FY25, driven by the increased adoption of WhatsApp and other digital channels.

Factors Impacting Profitability

During the quarter, Tanla Platforms faced increased costs due to its infrastructure revamp, leading to higher cloud and hosting charges. Employee costs also rose due to salary increments, net additions, and restricted stock unit (RSU) expenses. There was also a noticeable rise in marketing and general expenses, though forex gains partially offset these costs. These factors collectively impacted the company’s operating margins and bottom line.

CEO’s Statement

Uday Reddy, Founder, Chairman, and CEO of Tanla Platforms, emphasized the company’s focus on future growth, stating, “Amidst the dynamic landscape, we have navigated shifts effectively while building a foundation for sustained growth. With strategic investments in OTT, platform innovation, and investment for future growth, Tanla is positioned to drive impactful industry shifts.” He also mentioned a deal secured with one of India’s largest banks for Wisely ATP, underscoring the company’s commitment to secure digital solutions.

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