Tanla Platforms stock tanks 20% post Q1 earnings

Shares of Tanla Platforms crashed 20 percent today after the software products seller reported a 4 per cent fall in consolidated Q1 profit. Tanla Platforms stock was stuck in the lower circuit of 20 per cent at Rs 731 (52-week low) against the previous close of Rs 913.70 on BSE.  Tanla Platforms share has lost 27.1 per cent in the last four days.  

The stock opened with a loss of 3.91 per cent at Rs 878 today. Tanla Platforms shares are trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. 

The stock has fallen 21.8 per cent in a year and fallen 61.29 per cent in 2022. However, the stock has risen 1,913.77 per cent in the last five years.  

Total 5.23 lakh shares of the firm changed hands amounting to a turnover of Rs 39.41 crore on BSE. The market cap of the lender fell to Rs 9,923 crore on BSE.

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The firm reported a 3.90 per cent fall in Q1 net profit to Rs 100.41 crore against Rs 104.48 crore net profit in the corresponding quarter of the previous fiscal.  

However, sales rose 27.74 per cent to Rs 800.14 crore in Q1 against Rs 626.38 crore in the June 2021 quarter.  

Earnings per share fell 3.91 per cent to Rs 7.38 in the last quarter against Rs 7.68 in the June 2021 quarter. Profit fell 28.59 per cent quarter on quarter (QoQ) from Rs 140.62 crore.  

Sales too declined 6.18 per cent from Rs 857.64 crore on a QoQ basis.  

Uday Reddy, founder chairman and CEO of Tanla Platforms, said the company was progressing well on its one platform strategy.

"The June quarter had some operational headwinds in the enterprise business, but we have our building blocks in place to accelerate our momentum in the coming quarters. We have a strong balance sheet and are excited by the opportunities ahead of us," Reddy said.

In a pre-earnings recommendation, HDFC Securities gave a target price of Rs 1,350 on July 20 this year.  

"The A2P messaging is witnessing strong growth; enterprise business has a 30 per cent share and will clock 15-20 per cent volume growth. Platform growth will be driven by Wisely and Trubloq. Margins for both enterprise and platform will be under pressure due to more competition and telcos demanding higher revenue share. We have a BUY rating, with a target price of Rs 1,350, based on 26x FY24E."

Tanla Solutions offers software products. The company offers application-to-person service (A2P) messaging platform globally.