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Tanla Solutions Ltd.

BSE: 532790 Sector: IT
NSE: TANLA ISIN Code: INE483C01032
BSE 15:48 | 27 Mar 2018 Tanla Solutions Ltd
NSE 05:30 | 01 Jan 1970 Tanla Solutions Ltd
OPEN 31.25
PREVIOUS CLOSE 30.60
VOLUME 53215
52-Week high 54.80
52-Week low 28.85
P/E 115.74
Mkt Cap.(Rs cr) 351
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 31.25
CLOSE 30.60
VOLUME 53215
52-Week high 54.80
52-Week low 28.85
P/E 115.74
Mkt Cap.(Rs cr) 351
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tanla Solutions Ltd. (TANLA) - Chairman Speech

Company chairman speech

Dear

Fellow Shareholders

I am pleased to report a highly satisfactory year for Tanla both at an operational andfinancial level. We have achieved a significant growth in revenues and marginduringFY15thisincreasehasbeenachievedprimarilyduetoa concentrated effort to consolidateour position in the domestic Application to Person (A2P) messaging business.

Below are some of the key indicators of our performance during FY15:

• Increase in total annual revenue by 132 % up from Rs. 104.6 Crores in FY14 toRs. 242.5 Crores in FY15 .

• EBIDTA increased by 113% up from Rs. 35.7 Crores in FY14 to Rs. 75.9 Crores inFY15.

• Domestic business revenue up by 421% from Rs. 25.4 Crores in FY 14 to Rs. 132.4Crores in FY15

• International revenue up by 18% from Rs. 78.7 Crores in FY14 to Rs. 92.6 Croresin FY15

In the domestic market our market share grew significantly and we are now firmly theleaders in A2P messaging in India with our Domestic hub processing 27 billionmessages in FY15. We achieved this through a concerted effort by consolidating ourexisting deployments as well as with a major new deployment with Vodafone India. Thedomestic messaging market is driven primarily by transaction alerts 2 factorauthentications and the delivery of one time Passwords social networks over the topmessaging providers along with enterprise and Government communications. We expect thismarket to show significant growth over the next few years driven amongst other things bythe Government initiative of digitizing India.

In addition to consolidating our position in the domestic market we deployed aninternational messaging gateway hub in Singapore. This hub connects to the InternationalLong Distance Operators (ILDO) of various Indian mobile networks to terminateinternationally originated messages into India in accordance with TRAI’s 16thamendment regulation for internationally originated messages. The International hub isbeing tested by leading international players OTT messaging providers and largeresellers and will start commercial traffic in Q2 FY16. This will also pave the way forus to enter other international markets that are important to our customers.

We are also in the process of transforming ourselves into a Cloud Based communicationsplatform for messaging voice and video. This new platform is currently under developmentand will provide cloud based API’s to enterprises and application developers for alltheir communication needs.

Your company’s northward journey necessitates strong internal control systems inplace to ensure correctness in every step forward. Appointment of KPMG in India asinternal auditors and bringing into place a business control team to monitor revenueassurance and control costs is to ensure a check and balance system in place for arrestingrevenue leakages and overboard expenditure. The business control initiative has helpedyour company in reaching positive cash flows and streamlining of debtors. Efficientmanagement of cash flows and realization of debts have also contributed to a Cash balanceof INR 299 Mn in FY15 up by 56% YoY from Rs. 191.7 Mn in FY14.

Employees have been your company’s indispensable assets in action 90% of theemployees are technically qualified professionals in the technology team and more than 20%of employees have been with the Company for more than five years. Rewarding such deservingemployees is our pleasure and hence we have announced a very encouraging employeeincentivization plan apart from the monthly incentive program for top performers. Ingeneral employees in Tanla enjoy a congenial work atmosphere with certain common benefitslike health care for the immediate family members and re-visiting of the corporatepolicies vis--vis the changing global work culture. Tanla believes in providing anamicable atmosphere for its employees and has established a recreation and wellness centrefor employees.

I encourage you to email us your questions on any matter in this Annual Report toar1415.investorhelp@ tanla.com that would be addressed during the AGM.

As always I would like to place on record my appreciation for the unfl inching supportand wise counsel of my fellow Board members.

The continuing trust of shareholders active engagement of stakeholders and exceptionalresolve by employees has made this growth truly inspiring. I take this opportunity toconvey my appreciation to all our shareholders and express our gratitude to government andits agencies our channel partners customers bankers and suppliers.

I look forward to meeting many of you at the forthcoming Annual General Meeting inSeptember to discuss our achievements and share further updates.

Warm regards

D. Uday Kumar Reddy