Tanla Platforms hits new low

Tanla Platforms, a cloud communications company, which had closed yesterday at Rs.913.70, went on to today to hit the 20% LC of the day at Rs.731, which is also a new 52-week low.

The company posted a 29% (QoQ) decline in net profit at Rs.100 crore on a 6% drop in revenue at Rs.800 crore.

In a letter to shareholders, founder Chairman & CEO, Uday Reddy, said that Q1 performance was impacted due to a combination of external and internal factors: Market disruption, Legacy systems and infrastructure modernization and forex.

Looking ahead, the CEO has said, “ While our revenue grew 28% YoY in a seasonally weak quarter, we had pressure on our profitability. Our EBITDA and PAT margins are industry-leading even at Q1 levels, but it is lower than the levels we have operated at in the past. We have delivered 20%+ EBITDA for the past 5 quarters and that is the level we continue to aspire for. We are confident that at the end of this cycle, we will come out stronger with our customers and be able to get back to better profitability systematically over the course of this financial year.”