Shares of Tanla Platforms fell 20% intraday on Tuesday, hitting a 52-week low of Rs 731. Investors sold shares after the company reported weak operating results for June 2022 (Q1FY23). Shares of the software products company have fallen below the previous low of Rs 790 touched on September 21, 2021.

Market prices for Tanla Platforms have fallen 50% in the past three months, while S&P BSE Sensex has lost 3.3%. It hit an all-time high of Rs 2,094 on January 17, 2022.

The stock was down 17% at Rs 754.55 at 9.53 am, while the benchmark index was down 0.56%. As of this writing, over-the-counter volumes have grown nearly 10-fold, with a total of 3.65 million equity shares changing hands on the NSE and BSE.

Tanla Platforms is one of the largest CPaaS players in the world. It handles over 800 billion interactions per year. About 63% of A2P SMS traffic in India is processed through Trubloq, making it the largest blockchain use case in the world.

Tanla Platforms reported a sequential year-on-year (YoY) contraction of 16% and earnings before interest, tax, depreciation and amortisation (Ebitda) margin of 600 basis points in Q1FY23. Tanla Platforms said Ebitda margins were impacted by operational headwinds such as market disruption, modernisation of the company’s legacy systems and the impact of the euro depreciation on foreign exchange.

The company’s organic revenue rose 28% yearly, a multi-quarter low. It reported revenue of Rs 800 crore for the quarter, mainly driven by higher domestic sales and faster growth in the OTT channel. On a quarter-on-quarter (QoQ) basis, revenue declined 6% from Rs 853 crore in Q4FY22. Profit after tax fell 4% year-on-year and 29% quarter-on-quarter to Rs 1 billion.

However, analysts at HDFC Securities expect the enterprise/platform growth momentum to continue (+18/34% FY22-24 CAGR) driven by rising marketing and transactional information traffic. Enterprise market share will remain the same (30% for Karix), while platform share may decline. The brokerage said profit margins would slow in the near term, given increased competition and telcos demanding higher revenue shares.