I am writing to you with a deep sense of satisfaction earned after many years ofrelentless hard work to arrive here and report the achievements you will read in thisreport.
Im delighted to note that your company now stands at the throes of a period of asecular predictable and industry leading growth; evident from the dividends we were ableto pay you our valuable shareholders.
Tania today is unarguably the largest A2P messaging service provider in the world. Ourfinancial performance for FY16 is a reflection of our relentless focus on attaining thispole position and becoming a technology partner of choice of our marquee clients.
Below are some key indicators of our performance during the year
- Consolidated revenues increased by 78% to Rs. 431.5 crores in FY16 from 242.5 croresin FY15
- Domestic revenues increased by 111% to Rs. 280 crores in FY16 from Rs. 132.6 croresin FY15
- EBIDTA stands at Rs. 70 crores in FY16 as against Rs. 76 crores in FY15. Thereduction in EBIDTA is mainly on account of an increase in operational expenses due tocertain one-off charges incurred towards new deployments
- Consolidated PBT increased by 226% to Rs. 18 crores in FY16 from Rs. 5.5 crores inFY15
- Consolidated PAT increased by 360% to Rs. 12 crores in FY16 from Rs. 2.6 crores inFY15
- Debtor days down to 77 days in FY16 from 217 days in Fyl 5
- Cash and cash equivalents up by 70% i.e Rs. 51 crores in FY 16 from Rs. 30 crores inFY15
The Year in a Nutshell
Your company now stands at the very heart of the ecosystem driving E- Commerce SocialMedia
E-Governance and touches daily lives of millions of people across the world. Ourgreatest encouragement comes from being able to pitch our story to some of the largestbusinesses in the world and watch them progress from seeing our potential to trulybelieving in it.
As the world's largest A2P platform we work against the most unforgiving expectationsand deadlines. Relaying a message originating on a server in San Francisco to a handset inrural India in less than 5 seconds and with a 100% delivery guarantee for instance. Wedeliver the promise with each message every time and cutting across all gender agegeographical or economic differences over 200 mn times a day and 44 bn times a year.
I mentioned in my letter last year that we are in the process of transforming towards acomplete enterprise cloud communication service provider for messaging voice and video. Iam happy to report that our cloud communications platform has been selected by a leadingMobile Operator to deliver services to enterprises in India.
The most satisfying highlight of the year has been one of the many promises wedelivered of being able to pay you dividends. You may recall that your company paiddividends for eight years continuously but was forced to break the tradition the last fouryears. We assure you that we will strive to keep that going year on year.
This year also marks our maturity in corporate governance fostering a culture ofextreme transparency that begets trust and accountability.
We began the year by brainstorming and arriving at a very solid Annual Operating Planlisting our annual quarterly and monthly goals that was shared across the organizationso we work in strong collaboration with each other to achieve our corporate goals.Weve appointed KPMG to help us track our Annual Operating Plan across alldepartments to continue driving success. KPMG continues to be our internal auditor for asecond consecutive year along with Ernst and Young for internal financial controls. Thisyear KPMG is also enabling Tania in standardising IND-AS practices.
Our employees are our biggest strength and to acquire develop and retain our talentwe have announced ESOPs as a gesture of gratitude for their efforts towards our inclusivesuccess.
Also this year marks a new chapter in our customer and partner engagement as Taniahosted 'The Dialog Box a two-day event that brought together all our customerspartners and other stakeholders together to foster a healthy two-way dialog to better ourrelationships. The event featured talks in leadership by personalities such as cricketerRahul Dravid Chief of Army Staff during Kargil War - General VP Mallik and doubleamputee mountaineer Mark Inglis.
The Road Ahead
The end of each successful year is always the beginning of another great year to setour bar higher and reach greater milestones. Our achievements in FY16 make me veryconfident of a splendid next year. I place my trust in our highly talented team and inthe strength of our strategy.
The market for A2P messaging and Cloud Communications looks very promising for theyears ahead driven by the increased amount of connected devices and backed by trends likethe Internet of things Smart Cities and increased use of electronic payment methods. Webelieve the Low communication cost per connected device that we offer coupled with ourstrong Operator relationships will position us uniquely to take advantage of the growth inthis market.
Our plans for the year ahead include continuing to gain market share in the domesticA2P Messaging market as well as extending our footprint to key international markets wherewe have strong relationships. The result of this would be an increased realization pertransaction.
Our Cloud Communications platform will also be a key area of focus for the company inthe year ahead with the aim to evolve into a single Application Program Interface (API)that empowers global businesses in their communication needs giving them the ability toembed intuitive communication with their applications. It is encouraging to note thatCloud Communications is a fast growing sector evident from the recent successful IPO ofTwilio (Nasdaq:TWLO).
It is my perennial strong faith in this organization that lead me to invest Rs. 42crores i.e. 10% of the public issue in 2006. This year again a decade later myconfidence in your company is only stronger; making it an easy decision to take up theallotted share warrants of value Rs 33.87 crores at Rs 33.87 per share warrant i.eapproximately 10% of the total equity. The motivation and encouragement with which I makethese investments is solely derived from my belief in the real potential of your companyand my trust in an extraordinary future.
Among the areas of improvement we are determined to focus this year is 'InvestorCommunications. I urge you to follow us on social media for direct and timelycorporate updates and offer us your feedback. We will also arrange an 'InvestorCall at the end of each quarter to be more available to you and take your questionsand suggestions.
Our achievements couldnt have been possible without your constant support. Ithank you deeply for believing in us through the years. Id also like to thank ouremployees who are the force behind our achievements my fellow board members ourcustomers partners and every single person on whose mobile beeps a notification fromTania platform. You make us stronger each day to scale new heights.
I look forward to meeting you at the Annual General Meeting on September 12 2016 tofurther discuss our achievements and thank you in person.
D. Uday Kumar Reddy
Mr. D Uday Kumar Reddy
Chairman & Managing Director
Mr. Gautam Sabharwal
Director - Global Business Development
Mr. Ram Narain Agarwal
Director - Independent
Dr. A.G.Ravindranath Reddy
Director - Independent (w.e.f 30th June 2016 )
Ms. Kalpana Reddy
Director - Independent