Tanla Platforms Limited (TANLA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Tanla Platforms Limited Q4 FY '25 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Ritu Mehta. Thank you, and over to you, ma'am.

Good evening, and welcome to our Q4 earnings call. Joining with us today are Uday Reddy, Founder, Chairman and CEO; Deepak Goyal, Executive Director and Abhishek Jain, CFO. Before we start the call, let me draw your attention to the fact that today's discussion may feature statements that are forward-looking in nature. All statements other than statements of historical facts could be deemed forward-looking in nature. Such statements are inherently subject to risks and uncertainties, some of which cannot be quantified or predicted. A detailed disclosure in this regard is mentioned in the results presentation that is uploaded on our website. Audio recording and transcript will be available soon. Hope everybody got a chance to go through our investor presentation and shareholder letter. The management will be happy to answer any questions, and we will now open the floor for Q&A.

[Operator Instructions] The first question is from the line of Balaji Subramanian from IIFL Capital Service.

I have 3 questions. The first would be on the enterprise revenue. We have seen that while you have ramped up really well on OTT platforms, including WhatsApp and RCS, there has been this continued drag from the ILD SMS volumes and revenue. So what would be the ILD SMS revenue for the fourth quarter? The reason I'm asking is just to get a sense of how much more pain is left? And when can we see the benefit from the pickup of OTT channels really benefiting your overall top line? So that would be my first question. I'll come back with my second and third questions after we are done with this.

So you're right. I think if you see this quarter OTT channels has really performed well. We have been telling you over the last couple of quarters that our largely on OTT channel. So entire enterprise segment on a solution buildup has done fantastic work in all the various channels that we work, RCS and others in moving the needle significantly up from an OTT perspective, right? Today, OTT is nearly 29% of our revenue base. From an ILD question perspective, it continues to be weak. But I think within our portfolio now, it is sub 10%. It is not material enough for us to materially worry for us in a future projection perspective. So I think we have seen the weakness of ILD. From a year-on-year perspective, it's really impactful. But from a quarter-on-quarter perspective, I think I would say it is not any more visual enough to create a big pain point for us from a FY '26 perspective.

That is really helpful. My second question is on the platform revenue. While I can see that the Y-o-Y numbers were impact on a reported basis were impacted by the Vodafone contract going away. What explains the relative weakness Q-o-Q? I do know that on a full year basis, excluding Vodafone, you have done well, but 4Q seems to be a little weak, at least sequentially. So anything to call out there? Or it is just a seasonality issue?

I would say it's just a blip, Balaji. We should not read too much in 1 quarter per se. As we have been telling you, we have put all our trust on platform as a channel and of course, OTT and a few other strategic things that we have talked about. So we have really, really go about all the 3, 4 platforms that we have talked about to you earlier. I'm sure you have gone through our announcement a couple of days that we've done that we have signed a RCS platform with 2 of the large telcos outside India. So it's the first large win for us, which is in outside India. So you should start seeing the contribution of that by end of Q1 onwards as the things ramps up. It's completely revenue share subscription based model there ATP as another example is seeing a good traction with customers. Of course, I don't have any good news to share as of now in terms of any new incremental win in India. But I can only tell you that assets continue to be very, very promising, and we are very excited about the opportunities that is there with us. So I would say this quarter is just a blip. We continue to believe that platform would play a story for us for FY '26 and beyond.

That's helpful. My last question would be on the gross margin in the enterprise segment. It has been kind of trending downwards. I understand that mix probably plays a role here. But anything you want to call out there, where should one expect the margins to trend going ahead?

So I think if you remember, I called out earlier as well, we would like to be in a narrow band. I think between 25% to 27% gross margin is a narrow band that we have been operating in the last couple of quarters. While we don't guide, but I would say those are the range or range that we want to operate at. Our industry has seen a significant headwind and a pricing pressure in the last couple of quarters, especially from an SMS perspective. I believe that hopefully, have bottomed out from a pricing perspective and any upside that we get from a price increase would only help both top line and gross margins. We have also been working much more efficiently in terms of how do we deliver to our customers, how do we build up a solution story with the customers and hence, bring out a more efficient way of delivering the messages and communication channels to our customers. So that is helping us. But Deepak, anything specific that you think I should add.

No, no. Abhishek, you covered everything.

Yes. So I think, Balaji, net-net, I think it's more of a pricing pressure that we went through last couple of quarters, but we are doing all the way to see how do we compensate through various other channels. And I don't see a big headwind at least as we speak.

Next question is from the line of Jyoti Singh from Arihant Capital.

Sir, just wanted to ask your view on the industry side. So on the SMS side, as we have continued seeing the volume decline and shifting on the WhatsApp. So what's your view for the positive FY '26 and how we are seeing going forward? Any kind of visibility that we are seeing in India for the messaging side? And what's your overall view on the industry side?

I'll take it and then I'll maybe request Deepak to add on it. I think -- to be honest, FY '25 has been a very tough year for us. But from an industry point of view, but nothing to do with volume is, of course, more to do with pricing and every player in the industry wanted to be a little bit aggressive in gaining the market share. From a volume perspective, I think industry would have only grown or at least between 15% to 20% double-digit growth. That's not reflected completely on the top line is primarily because of the pricing and the price erosion that we have seen over the last couple of quarters, and we have been calling it out. We strongly believe that we may have bottomed out from a pricing perspective and hence, any upside that we get here from a pricing correction perspective would only help both top line and the bottom line. But that's one picture of the story, right? Second line of the story, if you see ILD, as I said, has not been material enough at least for us. So we do not see it to be material as a headwind going forward for ourselves. The third OTT channel continues to play a very, very bigger part pie. We were roughly around 15% earlier last year contributed -- today, that percentage is 29%. WhatsApp RCS continues to play very -- role. We are reaching every day new heights, both in WhatsApp and RCS business. I think WhatsApp has done phenomenally well for us this quarter as well. So OTT won't be the way forward. And the last would be platform. I think platform continues to be a great story. So I'm giving a bit of both industry and where we see a lot of positive bias for ourselves, right? As I just said in the call earlier that the sales we have signed with 2 large telcos globally. So it gives us the first footprint to go outside India from a platform business. So we remain very, very positive. The good part, Jyoti, for us at least is that while we may have a headwind from a pricing perspective on SMS and ILD, our exposure to ILD business has narrowed down significantly, right? Be it the platform and the WhatsApp capability that enterprise team has for us, creates a very differentiation between us and our competition. So I think in that sense, we are hopefully well placed as we speak.

So sir, just wanted to understand that we are not impacted at all going forward or in this event?

No, it would be difficult for me to give a forward-looking statement. What I say 2 things, right? One, ILD contribution to our overall revenue today is less than 10%. So it's a single digit. So I would say any decline there or any impact there doesn't have material impact to our overall growth. And b, SMS from a volume perspective, continue to grow very well. It's just that pricing has been a little bit stretched. What happens tomorrow, we have to wait beyond this.

Jyoti, do you have any follow-up question? [Operator Instructions] Next question is from the line of Ram Tavva from Equinox Capita.

So I joined late. I'm not sure this question has -- I joined late. I'm not sure this question has been already asked. So from Uday's note, I said that now we want to take it global. I mean the global footprint is what you have been -- this financial year is what you are aiming at going global. So is the baby steps what you have been contemplating to take this forward? Or is it with the kind of aggression? Can you just throw some light around that?

So we believe on delivery rather than calling out what we want to do. But I'll give you a couple of instances that will help us understand what we are talking about, right? We do, for example, have presence in Middle East. Our enterprise business is there. And Deepak and team are trying to see how do we ramp up much faster than what we have done in previous years or previous quarters. If you see ILD, which has significantly impacted has got offset by good growth that we have seen from an international business perspective. So enterprise business is focusing on international business. Of course, it's certain geographies that we have restricted ourselves right now. But there, we are seeing a good traction. Similarly, on a platform business perspective, I think going global is the right way for us because in India, we have both our DLT platform or RCS, which is the Map platform deployed with most of the telcos. So we have now taken it to 2 large telcos outside India. I would say at this moment of time, we see good traction both in India and outside India for the platform that we have. We will be able to share more as we see the success. We want to not talk ahead of the third, but I can only tell you that all our efforts of both Deepak and Vish are on expanding business outside India as well.

Okay. So these 2 international clients, is it possible to give any material numbers? How much business have you got numbers?

So, it is a little confidential in terms of we are not allowed to disclose the name either the country and the contract value. But it is more of a platform deployment and hence, it's a revenue share subscription-based model. As the revenue and the platform volume goes up, we will -- our revenue share towards that platform will gradually increase. So that's only I can call it out at this stage. But we'll definitely share as we are allowed to -- as we go live with them and when we are allowed to talk, we'll give you more details about it.

Okay. So is it a conscious effort that this Map platform has been marketed outside India that we got the business or it's a one-off lucky strike what we got from this opportunity? Is it any separate marketing team, sales team reaching out to other geographies?

It's a conscious effort. It's a conscious effort. We are -- yes, so -- and we have a very good pipeline as well.

So you see very good potential in this in the Map platform?

Absolutely.

Okay. And coming to this Wisely ATP, I just want to understand we have anticipated a very good potential in this space. But however, the traction is not as great as what we have anticipated, right? So in a way, is this Wisely ATP it went to a lull or still you see the potential of traction from the market still we can keep some hopes where we can strike deals in this space on the Wisely ATP.

So Ram, the way to see about this product, it's solving the problem of RCS and it's a very, very promising technology. And I believe both the regulatory authorities, telcos, enterprises all are cognizant of the fact -- but any such product, whether be in India or outside India, need to prove their success stories and so forth. We have done 2 success stories in India have been with the client for almost a year now, and we are very happy and we have renewed with them as well. So the cycle time for us took a little bit longer. And now since we have proven track record of our customers being happy with us and renewing it, we are excited about this opportunity and to scale it up. As we speak, we see a great pipeline. And we strongly believe that this is an asset, which will give us a good result both in near term and in the long-term.

So you're still excited with this opportunity Wisely ATP?

Absolutely, absolutely, absolutely. So I'm saying it's not excitement, right? Just to clarify, it's not exciting. See, being a technology wizard, we'll always be excited about any technology that we create and launch, right. I'm just saying...

Even the business opportunity also should be exciting, right? So technology may be great, but if you don't have a business opportunity, business potential and that also it is -- more of a -- your depth.

That's the point, Ram I was trying to point out that we are seeing a good traction with our enterprise clients.

Okay. Understood. And though you may not substantiate with the objective numbers, this year, can we see some kind of a growth in top line and bottom line. Last 2 years, it was flat. It was a testing time for all as investors, right? So do you anticipate you have plans in place that this year, we can see some growth both in top line and bottom line? What are your confidence level?

See, it would be difficult for me to make a forward-looking statement. I can only tell you that we are exiting the year with a very good note, right? If you see from last number of 4, 5 quarters, we have not grown. In Q4, we have grown 2% plus. So we will have a tailwind from a Q4 growth perspective, right? Q4 and Q4 itself will lead to growth. So I think it's a good place to be at first. B, we've seen a good traction both from OTT, RCS platform, as I called out. So I would say we are well placed as to what we were earlier and our exit this year is much better, I would say, than what we were earlier. I would say we'll see how the year spans.

It's Deepak here. Just to add to what Abhishek has said. As Abhishek said, this year -- last year has been a bit tough for us. But it has been quite tough for the overall industry and for our competitors also. I mean -- and let me tell you, most of them are bleeding. So if we really see ourselves vis-a-vis our competition, we really did very, very well. And we are -- we generated profits. I can very safely say that we would be -- though our revenue market share may be 40%, 45%. But in terms of our profits, our share would be more than 70% of the industry. So we did well despite all the price pressures and everything. And we know our competition is bleeding a lot. And this year and going forward basis, we see much better days ahead. That much I can say.

Got it. Okay. And since we have the good can I ask the question or someone is there in the queue?

No, no, no. I just wanted to add one point, right? And Deepak, since Deepak touched upon it, I thought let me complete as well. Both leadership both from Uday sir and Deepak and other leaders' perspectives, what we believe is cash is being right. Ultimately, anything -- any business that we do should convert back to cash in the bank. And we are very excited and happy to say that we touched 4 digits from a bank balance perspective, highest ever in history. Our bank balance at the exit of this year is INR 1,009 crores. Our free cash flow for the full year was 101% of the PAT and last Q3, Q4 has been on an average more than 150% of the PAT. And -- any industry free cash flow is really, really good. What does it mean is, a, how do I return back to our shareholders. And hence, we have given an interim dividend and then the next interim dividend of INR 6 and Board has approved it this quarter. B, we have cash with 0 debt in our balance sheet to invest on our talent, to invest on the technology, to invest on the solution for our enterprise clients and continue to hunt for the right strategic assets that could fit our bill, right? So I would say not just from a growth perspective, but we have been very, very conscious about converting the profitability to finally cash in our books, which becomes very, very critical for us. Yes, sure. Go ahead, Mr. Ram.

We will move on to the next participant. [Operator Instructions] The next question is from the line of Amit Chandra from HDFC Securities. Amit, can you hear us? Next question is from the line of [ Rohan Dhirya ], Individual Investor.

Yes. I'm slightly new to the company. So I just wanted to understand a little bit more about our WhatsApp offering. As I understand that Facebook also directly offers this offering through its cloud APIs at a slightly cheaper rate. So I just wanted to understand what is the value proposition for service providers when they provide it via us, I mean, especially for large accounts?

It's Deepak here. So I'll just take this question. Firstly, Meta, which is Facebook, so they do not provide any lower rates than us. That is number one. Number 2, they do provide direct connects primarily to, I would say, a few global tech companies who are sending ILD messages earlier and that has moved to OTP on WhatsApp. But if you see that is a very simple kind of messaging where you're just sending one-way OTP message. And so there's not much technology is involved here or use case or any application is involved. And that's how Meta is taking that business directly. But that business in the overall scheme of things is not very big. But if you really see, what the kind of value add what we are doing, in fact, okay, just to give you an example, now even Meta is suggesting that the enterprises who are working directly with Meta should work with companies like Carex because we add a lot of value. We are -- the kind of expertise we have to build the use cases, we can keep on adding more and more use cases, keep on educating the customer where they can use a 2-way communication and create bots and create journeys and user journeys, which can create -- which can actually help them achieving their objectives. So when it is coming to only sending just one-way OTP, that is fine, but WhatsApp is much more than that. And that's where we come as a player.

Got it. And one more follow-up question I had is, as I understand, Meta has been also reducing charges on WhatsApp, on some of the messages. So how would that impact our monetization or it has no impact?

So if you see that has already impacted. So what has happened is that Meta has increased the prices for marketing messages, okay? And so by doing that, the customers have reduced the volumes on marketing. And on the other side, they reduced the prices for utility messages, which we call it, let's say, for example, transaction message where you're sending information messages or transaction messages and all of that. So those prices have come to a level of SMS now. So that volume has increased, but the marketing volumes have decreased. So this is how it has happened. But that has happened like about a couple of quarters back. So that impact you would have already seen in our Q3 and Q4 results. So as we move forward, there is no much change. But the only change we foresee what we are getting hints from Meta is that there could be a slight maybe change in the way they charge for the utility messages, but nothing major impact over here.

[Operator Instructions] Next question is from the line of [ Sanjiv Gupta ], individual investor.

Am I audible? Yes. I understand that our company has basically 2 enterprise business as well as the platform business and platform business is much like the margins are much higher in the platform business. But the only thing is it takes probably time to scale up like for ATP, Wisely ATP, you have -- it takes almost 1 year to establish the use cases. So I would like to know a little bit more about our platform businesses and how do you look to scale it up and all those things.

Right. Yes. Good, Sanjiv. So let me give you a couple of points on platforms, right? So if you see a couple of years, we started our business or when we had launched our platform business, the prime contributor today as we speak was SMSC and the DLT platform that we had deployed with most of the telcos in India. Our aspiration is that each of the platform that we work on over 4 to 6 quarters or 8 quarters, depending on the life cycle and the use case goes to INR 100 crores ARR is the wish list of the ambition that we have put for ourselves. Now the first mature platform that as I said is Trubloq, which has been successfully deployed for the last 5, 6 years and has been doing very well. The beauty of that product is that it is so tightly embedded with most of the telcos that the incremental efforts, whether it be on GTM or innovation, innovation, we continue to do because that's in our DNA. But more from a GTM perspective is hardly anything, right? So that's a very, very mature product that we have. The second product that we launched a couple of quarters back was -- I'm just giving you some of the platforms name, right? So second was ATP, where we have seen a good success with 2 large telcos and one small deal with one of the OTT players. I think, we -- as I was telling earlier that we have shown a good case studies, we have shown use case, good use case. We see a lot of good traction as we speak in the market for the ATP and look very, very promising assets for us. The third is RCS Map platform, which has really done well. We have seen RCS ramping up beautifully in India. We are closely tightened up with the telcos. We are seeing a good revenue share and the volume sports going on in the enterprise side on RCS and our revenue share as well. And similarly, the same platform has been now deployed with 2 of the large telcos outside India, and we wish to take it to a few more telcos outside India as well. So I'm just talking about 3 out of the other out of few platform businesses that we have. But I think while, yes, the scaling takes time, as we speak, we believe we are very, very excited about the opportunity that we see for both near term and medium term.

You see as investors, when you had launched that anti-phishing platform and like you were about to launch it in maybe Barcelona, the whole investing community was very much like excited that this is going to lead to a lot of revenue growth and profit growth and things like that. And probably that has taken time and those success of that platform launch has not translated into profits and bottom line as yet. So I think that is what the main anxiety, which all the investors are facing feeling that when that can happen, that ATP platform resulting into bottom line growth and profits and EPS growth.

I can only say that the asset is beautiful. It's solving the purpose and the pain that we are all going through both as a consumer as an enterprise and as a regulated authority. It is taking a little larger time perspective. We are still excited and let's see. We hope the product will do well as we go forward.

Yes, it's a real pain point. Like, every day in the first page of the newspaper, there are people who are getting scanned and their fraud and things happening. And we think that we have a solution for that, and we think that, yes, and I wish you all the best, and we are hoping for the best and staying invested.

Yes. Point taken.

[Operator Instructions] Next question is from the line of Amit Chandra from HDFC Securities.

So my first question is on the OTT platform. Obviously, we have seen very strong growth in this quarter and also for the year, the revenue has almost doubled. But as the base for this OTT has been increasing and now it's 30% of the revenue. So from this high base, can we assume that the strong growth will continue? And also, in terms of the market share and how the whole market is growing, if you can share how the market share has shifted for us on the OTT side? And also, if you can comment on the pricing-related uncertainty that was there. So is the pricing for the OTT channel stabilized? And also, in terms of the shift that we're seeing from the ILD to the OTT channels, so are we seeing some shift from the NLD also to the OTT channels as well?

Hi, Amit. A couple of points, right? I think OTT channel growth has been really good, done well. I think we're exiting this year with a very, very high tailwind, I would say. I think we are very, very excited. The enterprise team has done fundamentally extremely good job in gaining the market share. I would say, A, while market would have grown for the OTT channel, I strongly believe that we have gained the market share every quarter that has been gone by in the last couple of quarters, right? So our belief is that, yes, definitely, we have moved the market share for ourselves from an OTT point of view. From a price stability perspective, I think we have not seen any price change that last price change was happened in Q2 and early Q3. As of now, Q4 had fully baked in the price stability. At this stage, there is no discussion on price revisions and so forth as we speak from an OTT perspective, that's what you were talking about. I think from a shift from NLD to OTT, ILD to OTT, as I referred earlier that ILD has not been any more a material factor of volume for us. It's sub-10% for us. From an NLD to OTT shift, I think it's okay. I would say, there will be always some use case, which may shift from NLD to OTT or vice versa as well. But I think at this stage, I would say NLD volume has grown in a double-digit between 15% to 20%. And if we are able to get a little bit of price increase, I think it would be a great scenario both from a top line and a bottom line for us.

Okay. So assuming the base -- yes, sir.

Just to add -- just to give a bit more color, you would have seen -- I mean, as you've seen, our OTT volumes have grown, our revenues have grown. But we are making great progress in signing more and more customers. And we see that this year is going to be even better for us. I mean, just to tell you, we have signed and gone live with one of the -- I mean, in fact, the largest NBFC in the country. We have gone live with the largest gaming company in the country on WhatsApp as well as on RCS. We have signed the largest bank on WhatsApp. And currently, the integration is going on, and we are building a lot of use cases. We have also signed the, I would say, the #2 largest PSU bank, and we have gone live with them. And there is -- we have already -- I mean, our integration is on with a lot of other banks and food delivery companies and a lot of other companies, right? So we are seeing a great traction in what are the kind of use cases we are building, the kind of expertise we have shown to these customers, and they are really happy. And it is not just about WhatsApp. Wherever we are selling WhatsApp, we are selling RCS as well. So we're giving options to our customers where it's not just about WhatsApp, we are providing options on WhatsApp, RCS as well as Truecaller. So yes, and as far as the prices are concerned, customers have also realized that the kind of work we are doing, we are -- and so just to -- okay, in a nutshell, we are going to start charging for our services as well to these customers. So this year, we would see that our OTT revenues would definitely go up. Our number of customers will go up on these channels and our margins will also improve.

Okay. Sir, just on the OTT channel to understand the growth drivers more clearly. Now what is the kind of client mining strategy? So how many of our NLD customers are using the OTT channels? And also, whatever growth we are seeing, this is coming from existing customers or it's coming from net new customers that we are signing? And also, what is the stickiness in terms of the new customers that is being onboarded? So how easy or difficult it is to shift from one vendor to another in terms of OTT? And also the -- adding on to the margins to it, because as we have seen that the OTT volumes have been scaling up, the gross margins have been coming down over the last 4 quarters. So is it fair to assume that the OTT volume is coming at a lower gross margin?

Okay. So -- yes, Abhishek, please.

No, Go ahead, Deepak Goyal.

No. You please go ahead, then I will add on.

Sure. Fine. So Amit, I think it's a mix of both. As Deepak said, the advantage that we play out in the industry is that I think we are the only player in the industry who can offer all the channel end-to-end. And it's not just the channel offering, but the solution capability that we have on that the enterprise team has built up. Platform anyways, platform team has anyways had a strong footprint in terms of technology capabilities. But I can -- I'm telling you that from an enterprise perspective, the solution enterprise team has built up is very, very easy. And it's not restricted to one channel, but it's an omnichannel. And hence, that's what we are being preferred as a partner for our customers, which means that we are able to offer them the most efficient way for them to communicate, whether through OTT, whether through SMS or various other channels that our client would like to reach. And hence, the reason I wanted out to highlight that is the same client we are able to, A, deep dive and do organic growth and do a cross-sell off selling OTT channels with the same client, we are able to get the market share. We are also able to win new clients on the back of OTT channels and so forth. Second, the OTT channel is also about 2-way communication, rich media communications and solutions in the top clients, which becomes the case study becomes very, very use case, use case study becomes very, very critical for us and our clients, which means the stickiness for us and our customers becomes more important, right, rather than just a utility message being sent as a onetime. So I would say, because the solution is built on top of the platform that we have, our partners have, whether we met all of those, it becomes a more sticky story for us along with our customers. So that's one. From a margin point of view, we have been calling you out that we have been making investments for the future. We are making investments for growth. So I would say, the margin shift or a little bit softness that you have seen in the gross margin, not necessarily would only mean because of the shift to the OTT channel. It's also because of we have been making on various areas, whether we go to market, whether we get a cost and so forth. However, as Deepak said, there is an opportunity for us to price it better. There is an opportunity, there is a value that customer sees for our solution built up, and hence, we will be able to price them as well -- and hence, as I earlier communicated, we believe that margins should be in a narrow range. That would be our endeavor as we speak. Deepak, if you want to add it.

No, I just want to add, I mean, if you are aware, we, as a company, as Karix, we were about 3 years behind as far as WhatsApp is concerned in India, because WhatsApp appointed our competitor as their sole partner. And then they opened up for others for after 3 years. So it was always a catching up game for us. So to answer your question, yes, all the customers, they want to be on OTT as well. They want to have a 2-way communication with their enterprise customers. But we, as I mean Karix and Tanla and ValueFirst, so we were serving these customers for SMS. And slowly, we were pushing them to come to us to use OTT as well. So that shift is happening now. A lot of customers from our competition, okay, moving to us now. And that's what I just said a few minutes back that there are a lot of customers who are now signing us up who are there with our competition. So that shift is happening. And definitely, we are going to increase our market share on OTT channels.

Okay. Sir, and last question would be on the platform business. Obviously, we have launched the Map RCS outside India. So that will obviously be a boost. But in terms of the platform business growth, obviously, Y-o-Y, it is up ex of VI. But in terms of sequential weakness, what is not working there as per your view? And also the kind of uptick that we expected from the ATP side. So do you think that it's not working the way we earlier thought it to be? And also there is additional pressure from the in-house anti-phishing solutions being built by the telcos itself?

So I would say, Amit, we should not read too much this quarter. This is small blip. I think definitely platform continues to be very, very promising. What has not worked out, I would say, would be that we didn't thought that the sales cycle would take much longer, and we have to prove ourselves from a use case perspective, because the problem is real problem here and now. I think that's where maybe we would have gone wrong or our assumption would have gone wrong. But from an asset perspective, I think it has got nothing to do with the offerings that our competition has launched. I think it only supplements our platform use case that is real and it's very, very promising. As we speak, I would only say that the pipeline continues to grow. We continue to have serious interaction with our clients. We have renewed the 2 contracts that we had earlier, and we'll share with you as things go.

Okay. And lastly, on the cash balance that you have, INR 1,000 crores-odd cash. So that is 15% now of the market cap. So what's the inorganic growth strategy? Are we looking at some substantial kind of an acquisition outside India?

So 2 things, right? From a return to shareholder perspective, we have declared an interim dividend. Board has approved this quarter. So, we are declaring INR 6 as a dividend interim dividend, in addition to what we did last quarter. Second, I think the philosophy remains the same. We are very, very strategically investing both on our in-grown talent, right, because talent is key for the success both in the enterprise business and the platform business. Our HR team is working day in, day out to ensure that the talent is critical and we have the right hiring and right team in place. B, we continue to invest in the organic on the GTM side, on the technology side, on the innovation side. And the third M&A, as we said, we continue to look out for the assets. We don't want to rush. But whenever we believe that there are the right assets, which will help grow us faster, which will fit in -- fit with us from a cultural perspective, I think we will not shy away from making those investments.

Next question is from the line of Aditya Sen from RoboCapital.

So I see that the realization that India gets on WhatsApp is quite low, or rather I should say it is, I guess, the lowest when compared to other like 30, 40 countries. So is there a reason for the same? And do we see an upside as to matching the median realization or going north from the present realization that we get in all 3 segments, that is marketing, utility and authentication.

Deepak, do you want to take that?

Sorry, I couldn't get the question properly. Can you please repeat?

Sure. So the data, which shows that India gets the lowest realization in WhatsApp revenue, both in all the 3 segments, marketing, utility and authentication. So is there a reason for the same that why we are getting this lowest realization? And will we grow forward from here, northwards from here to match the media realization of the WhatsApp revenue?

No, I'm talking about -- are you comparing India's realization with other countries?

True.

See, that would always -- sorry.

Yes, please continue.

Yes. So that would always be the case. See...

Sir, can you hear us? Deepak sir, can you hear us?

Am I audible?

Yes, sir. You can go ahead.

Yes, Deepak.

Okay. So what I was saying that WhatsApp has kept their prices, keeping the prevailing SMS prices in that country, right? So if you look at it here in India, SMS prices are in the range of INR 9 to INR 0.11. So they kept their utility prices at around INR 0.11 and marketing messages, they have kept at around INR 0.70, INR 0.75. But in a lot of other countries, let's say, if you look at Indonesia, the WhatsApp prices -- the minimum price is INR 2.50 if I convert that into Indian rupees. And the reason is because the SMS price also over there is about INR 2.50. So, most of the countries, if you look at it, the SMS rates are much, much higher. The realization is much higher. That's why even WhatsApp price is also much higher. So this is how it works. I hope I answered your question.

That answers completely. And what the Indian enterprise segment for the next 2, 3 years? Any guidance on that?

I think we don't guide for future, so it would be difficult to say that. As I said earlier, we are exiting this year with a high note. Q4 has been good for us. Continues to show good tractions. That's where I leave it at right now. It would be difficult for me to make a forward statement.

No worries.

I now hand the conference over to Ms. Ritu Mehta for closing comments.

Thank you, everyone. That was the last question of this evening. In case we couldn't answer your questions, please write to us at investor help desk. Thank you so much. Good evening.

Thank you very much. On behalf of Tanla Platforms Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Thank you.