TANLA SOLUTIONS Good IT Stock To bet On

Tanla Solutions, calling itself a telecom infrastructure solutions providing company, Tanla has done pretty well for itself for the second quarter ended 30th September 2008. The acquisition of a telecom services company in the UK, a software development company in India, and the recent purchase of Openbit, a Finnish mobile payments company has helped fuel this growth.

For Q2FY09, the company recorded consolidated total revenue of Rs.212.41 crore against Rs.168.86 crore in the last sequential quarter, a rise of 90.63%. Overseas revenues were close to 96%, and India was 3.4% whereas other income was 0.6%. Of the total income, products contributed 10.23%, aggregation 70%, professional services 9.23%, while mobile payments contributed around 10.56%. The growth drivers were operations in international markets like UK and other European countries, and Tanla saw sequential network aggregation revenue going up from Rs.125.23 crore to Rs.147.77 crore, an increase of 18%. EBITDA margins stood at 45.66% for the quarter on a consolidated basis. Net profits have jumped 92.83% to Rs. 70.54 crore as compared with the same period last year.

The entire focus of the company currently is on emerging technologies globally and consequent launch in India. It is the first Indian company to offer 3G products and the applications to one of the mobile operators, MTNL, and also for the biggest operator in Sri Lanka called Dialog. Once 3G starts in India, Tanla’s services would include video alert service, video SMS service, video dial service, video blogs and also video conferencing services.
Along with domestic expansions, the company is also keeping its feet firmly on the global markets and has entered new markets like Spain, South Africa, Finland, Sri Lanka, and Germany.

Telecom is one sector which to a large extent has been affected by the global financial crisis and the slowdown in the Indian economy. Tanla is well poised to take advantage and hence makes a good investment even in these troubled times.
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