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Tanla Platforms shares flat ahead of Q3 results; a soft quarter likely, says HDFC Securities

Tanla Platforms shares flat ahead of Q3 results; a soft quarter likely, says HDFC Securities

Tanla Platforms’ total revenue is expected to increase 3 per cent QoQ and Ebitda margin is likely to expand marginally to 16.6 per cent. The gross margin will be flat for the enterprise segment, HDFC Securities said.

Tanla Platforms Q3 profit may fall 29 per cent YoY to Rs 112 crore on a 0.9 per cent YoY fall in revenue at Rs 876.70 crore. HDFC Securities sees Ebitda margin at 16.6 per cent, down 632 basis points. Tanla Platforms Q3 profit may fall 29 per cent YoY to Rs 112 crore on a 0.9 per cent YoY fall in revenue at Rs 876.70 crore. HDFC Securities sees Ebitda margin at 16.6 per cent, down 632 basis points.

Shares of Tanla Platforms edged lower in Friday's trade ahead of the company's December quarter results. HDFC Securities (Institutional Research) in a note expected Tanla Platforms is to report a soft quarter, due to lower volume growth both in enterprise and platform business. It sees profit falling 29 per cent YoY to Rs 112 crore on a 0.9 per cent YoY fall in revenue at Rs 876.70 crore. The brokerage sees Ebitda margin at 16.6 per cent, down  632 basis points.

At 11.20 am, the scrip was trading at Rs 701.95 on BSE, down 0.26 per cent. The brokerage said the transactional volume is growing but promotional messages are witnessing a slowdown. The Enterprise business will report 3.1 per cent QoQ growth,  but it will register a decline on a YoY basis due to the ongoing ramp-down in one large account, it said.

"Total revenue is expected to increase by 3 per cent QoQ and Ebitda margin is likely to expand marginally to 16.6 per cent. The gross margin will be flat for the enterprise segment, while the platform segment will operate in a similar range of 90 per cent. Ebitda margin will gradually reach 18-19 per cent next year, supported by expansion in enterprise GM. The impact of the ILD price is yet to be visible in realisation," the brokerage said.

HDFC Securities (Institutional Equities) has lowered its revenue and gross margin estimates for Tanla's enterprise business due to volume decline and a shift of margin expansion timelines, resulting in an 6 per cent cut in FY24E EPS. It maintained its buy on Tanla, but lower the target multiple. Its price target for Tanla stood at Rs 1,005 based on 22 times September 2024EPS.

Other than Tanla Platforms, companies such as HDFC Life Insurance, Reliance Industries, Union Bank of India, JSW Steel, Bandhan Bank, LTIMindtree, Petronet LNG and JSW Energy will also report their quarterly results today.

The board members of a few companies namely LTIMindtree, Ramkrishna Forgings, Coforge, DCM Shriram and Saregama India will also consider payment of interim dividends for FY23.

Also read: RIL shares trading lower ahead of Q3 earnings; here’s what to expect

Also read: Indiamart Intermesh shares climb 5% after Q3 results; ICICI Securities has a target of Rs 6,000 on stock


 

Published on: Jan 20, 2023, 11:30 AM IST
Posted by: Tarab Zaidi, Jan 20, 2023, 11:13 AM IST