FY 2019 was a seminal year for your Company.
Our achievements in innovation and growth were not accidental but rather a result ofrelentless dedication and professional excellence of our employees partners andcustomers. Tanla registered a revenue growth of 27% on a year-on-year (y-o-y) basis on anenhanced base and stood at Rs. 1004 Crore. EBITDA was up by 48% at Rs. 97 Crore. With theresultant increase in free cash flows our cash and cash equivalents stood at Rs. 228.79Crore at the end of the financial year.
In 2018 the Telecom regulator proposed a momentous legislation Telecom CommercialCommunication Customer Preference Regulation (TCCCPR) 2018 to alleviate the issues facedby mobile users with respect to spam fraud and individual privacy.
Responding with alacrity to this clarion call Tanla launched the world's firstDLT-enabled solution 'Trubloq'. This platform based on blockchain technology was launchedat the Mobile World Congress Barcelona on February 26 2019 by Mr. R. S. SharmaChairman TRAI.
This product has since received widespread acceptance and appreciation by both theregulators and the end user industries alike. As you read this the deployment of Trubloqat various client sites is happening and will imminently go live.
Your Company's acquisition of Karix was an ideal marriage of market leaders on two endsof the industry value chain.
Acquired at an enterprise valuation of Rs. 340 Crore from GSO Capital Partners aBlackstone company our complementary offerings will ensure future revenue growth. Since2000 Tanla has built solid relationships with telecom operators and provided technologysolutions in a rapidly changing and formidable telecom ecosystem. We have kept pace withnewer technologies and as early adapters of emerging technologies and protocols telecomoperators have had an umbilical relationship with us.
Karix on the other hand has over the last two decades built and nurtured clienteleboth from the Application to Peer (A2P) aggregator and marquee enterprises side. With over1500 customer relationships from sectors as diverse as government e-commerce BankingFinancial Services and Insurance (BFSI) Direct-to-Home (DTH) and retail there is littleto wonder that our combined entity revenue is the dominant market leader with the nextbest competitor at half the revenue.
Over the years as evident from my communiques I have stressed on our single-mindedobjective of inculcating international best practices in all aspects of corporate affairs.Tanla is pleased to announce the appointment of MSKA & Associates as the StatutoryAuditors of your Company with effect from September 30 2019. Deloitte Haskins &Sells is the Internal Auditor and to ensure adherence to our internal Standard OperatingProcedures (SOPs) we have engaged with KPMG for Loan Staffing. I am confident that thevisibility with the investor community at large will increase manifold with thesemeasures.
I am delighted to announce a reconstitution of our Board of Directors which would addheft and expertise to guide Tanla towards its stated future growth roadmap.
We are pleased to appoint Ms. Amrita Gangotra as Independent Director. Ms. Gangotraformerly Opco Director Technology (CTIO) of Vodafone where she operated from Internationallocations in Europe and the UK and the CIO of Bharti Airtel brings with her extensiveknowledge of IT transformation in the telecom sector and expertise in path-breakingtechnologies.
We look forward to her guidance in our global expansion and accelerated growth path.
Tanla also announces the appointment of Mr. Rohit Bhasin as Independent Director whowould also be Chairing the Audit Committee. Mr. Bhasin is a Chartered Accountant withexperience in leading organisations such as PricewaterhouseCoopers (PwC) and a strongfunctional experience in the finance area including Business Strategy InvestmentAdvisory Business Planning & Restructuring and Corporate Finance across sectors.Tanla would leverage on his experience in improving financial reporting and auditprocesses.
We are delighted to appoint Mr. Sanjay Kapoor as Non-Executive Director. He was theChief Executive Officer of Airtel for India and South Asia. Currently Mr. Kapoor is anactive member on the Board of Saudi Telecom Company (Gulf Cooperation Council's (GCC's)leading telco). Mr. Kapoor would be providing strategic insights on business growth brandbuilding diversification and technical inputs in corporate decision-making.
We also welcome on Board Mr. Sanjay Baweja as an Independent Director. He was theChief Financial Officer (CFO) of Suzlon Energy Ltd. a leading renewable energy solutionsprovider in the world
Mr. Baweja was also the CFO of Flipkart and Global CFO for Tata Communications. Withover three decades of experience across diverse industries we look forward to Mr.Baweja's guidance in areas of treasury management and better allocation of capital.
Tanla is also pleased to re-designate Dr. A. G. Ravindranath Reddy as Non-ExecutiveDirector. As a Corporate Consultant specialising in corporate laws economic laws foreignexchange laws and corporate restructuring we believe Dr. Reddy would contribute toraising the standards of corporate governance in Tanla.
The promoters continue to reaffirm their belief in the prospects of your Company.Promoter shareholding has increased from 30.06% as on March 31st 2018 to33.22% as on March 31 2019. In absolute terms it implies an investment of Rs. 12.95 Croretowards subscription of 7950858 warrants and payment of allotment price for 1665000equity shares. I would also like to thank my fellow 53853 shareholders for theirunwavering faith in Tanla
As we look to the future with a spring in our step going forward the growth driverswould include adoption of newer technologies and launching our products in the globalmarket. Migration of our existing platforms to the cloud will address issues ofscalability and ease of access. We would be also striving to onboard domain experts inthis sphere. Together Tanla and Karix will now embark on a calibrated expansion to theglobal markets.
I would like to take this opportunity to heartily welcome our new Directors and placeon record our gratitude to the outgoing Directors. I also look forward to the continuedunequivocal support and diligence of the employees of both Tanla and Karix.
I look forward to meeting you all at the Annual General Meeting on September 30 2019.
D. Uday Kumar Reddy