Tanla Platforms Limited (NSE: TANLA) Q3 2025 Earnings Call dated Jan. 22, 2025
Corporate Participants:
Ritu Mehta — Head – Investor Relations
Uday Reddy — Founder, Chairman and Chief Executive Officer
Abhishek Jain — Chief Financial Officer
Deepak Goyal — Chief Business Officer and Executive Director
Analysts:
Unidentified Participant
Sharat Kohli — Analyst
Amit Chandra — Analyst
Tejas Shah — Analyst
Ashish Gupta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Tanala Platforms Limited Q3 FY ’25 Earnings Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Mehta from Tanla Platforms. Thank you, and over to you, ma’am.
Ritu Mehta — Head – Investor Relations
Good evening, and welcome to our Q3 earnings call. Joining us with today are Reddy, Chairman and CEO, Deepak Goel, Executive Director and Chief Business Officer; and Abhishek Jain, CFO. Uday will share his perspective on business imperatives and strategic progress made. After his opening remarks, we will be happy to engage with participants and address their questions. 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-region. All statements other than statements of historical facts could be deemed forward-looking in nature. Such statements are inheritantly subject to risks and uncertainties, some of which cannot be quantified or. A detailed disclosure in this regard is mentioned in the results presentation that is uploaded on the website. Audio recording and transfer will be available shortly. I now hand it over to Uday for his opening remarks.
Uday Reddy — Founder, Chairman and Chief Executive Officer
Thank you, Ritu. Good evening, everyone. Very warm welcome to — a warm welcome and thank you for joining this call. I wish you a very, very happy New Year to all of you. I’m sure you had a chance to go through our investor presentation and my letter, which are very detailed. Let us straight as I get into our Q&A, the management team and I will be very happy to get into more details in the call.
Ritu Mehta — Head – Investor Relations
Yeah we will now open the Q&A. You can assemble the queue.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles our first question comes from the line of Deepak Chokkani with RAIT Capital. Please go-ahead.
Unidentified Participant
Good evening, good evening, everyone. I have three questions. First is how long before we see industry tailwinds to do away with and how do we plan to grow our revenues? That’s question number-one. Question number two is yes International, when do you expect the approvals? And the last question is, how do you plan to deploy the cash? Thank you.
Uday Reddy
Abhishek, you want to take this?
Abhishek Jain
Sure. Right. Thank you for the question, Deepak. You know, let me tell you onto the Group story side. We are — we are seeing an evolving market, right, where we continue to see a good volume growth from an NLT perspective. Of course, it’s a very, very price-sensitive market. So we do see dynamics in terms of playing out and which is not reflected in our top-line, but as we see certain stability or comeback on the pricing, we should see the growth momentum also building up. That was more from an perspective. Our international business, especially IND continues to be get impacted and hence, if you see our enterprise business overall was a little somber. But on a positive side, if I have to talk about, OTT business continues to really do well. The contribution from 15% to the overall revenue has moved to 23%. All the challenges, whether be WhatsApp, RCS and anything that I missed is doing phenomenally well. RCS has seen a 4x of growth. You know, we were recently awarded as RCS Growth Partner of the Year Board. And WhatsApp has also shown a good resilience despite the pricing correction that we saw from last quarter, where we had a full-quarter impact this quarter, we see a good growth momentum built-up as well in that. So overall, I would say it’s an evolving market. It’s very difficult to predict for me to say when, when we see the industry moving out. I can only assure you that we continue to maintain the market-share and our market-share in terms of the volumes and in terms of penetration, both from an OTD channel continues to be robust. Your second question was on VF International. I think we are also waiting for that. You know we have — we have approached RBI and other regulatory authorities for the necessary approvals. We don’t want to call-out the date, but as soon as we get the approvals, we will inform to the stock exchange and to all the stakeholders. The third question was on cash. Yes, I think we are proud to say that we had a solid run. People both from the sales and finance and other teams supported to generated solid cash-flow this quarter. We had free-cash flow of 180% of the PAT, which was highest in last few quarters. You know, we have two plans. I think, A, we will continue to invest in the innovation and the talent, which is more organic investments. I think they have spelled out earlier and we continue to innovate ourselves and we will continue to focus and continue to invest in that area. Second, our capital allocation policy, which is 30% return to our shareholders continues. We have declared an interim dividend of INR60 per share, which should be credited soon. And thirdly, Europe will continue to look for an assets where the inorganic investments. We’ll continue to look for an opportunity. So those are the three, I would say, three areas where we will continue to invest.
Unidentified Participant
Right. Thank you so much. All the best.
Abhishek Jain
Thank you.
Operator
Thank you. A reminder to all participants, you may press star and one to ask a question. The next question comes from Sharat Kohli with who is an investor. Please go-ahead.
Sharat Kohli
Hi guys. I have a few questions here. The first one is, you guys talked about OTT volumes going up, but unfortunately, there’s like almost a fight to the bottom, right? So we have the telcos that are now getting into the space. Well, has been there for a while, they’ve been are facing now competition from the OTT guys and OTT guys are cutting their prices. So unfortunately, we are price takers, right? So you know, what is your perspective in terms of when does the stop, right, because I don’t see an end to this, right? And so that’s my first question. Like — and let me be more specific on that question, like where would you see a trigger point where the OTT players — you know because to me, it’s such a — when you look at a player like WhatsApp, it is such a small market for them. In terms of the overall business that they do globally, right? So when I look at this whole market, I don’t see like why would they stop at this 30% correction in pricing that they did the last quarter, like why wouldn’t they go lower to get more business in India, right, and kind of cut of Bharti’s legs and stuff, right? So I’d like a more thoughtful response on that. My second question has to do. I know you made a comment on free-cash flow. I mean, it was great this quarter, but I’m guessing that’s because of all the cash that was held up by VIL and now that we are no longer at clients on this front, it’s 183% of PAT. But if I look at the last two quarters, we had recovered 40% to 46% as a percent of PAT. So we were lower than historic numbers, which were closer to 85% to 90%. So I think this is just playing catch-up. And on that point, you know on the dividend versus share buyback, I think it’s great that the stock is corrected, but I really think a good capital allocation, at least from a shareholder perspective. I mean, as a shareholder perspective, I end-up paying 36% tax on dividends that have come, right? So I think if you look at all the players globally who do a good capital allocation, they buy-back their stock. If they think the stock is undervalued, they buy-back their stock. And specifically in the case of India, if you bought back your stock as a shareholder, I could exit the stock and pay the 20% or 15% long-term capital gains tax, sorry, 12.5% of long-term capital gains tax as opposed to paying 38% tax on dividends and that should apply to all shareholders, including you the management as well. And finally, I had a question on the balance sheet. There was a massive increase in the platform’s internally-developed number, right? It went up from INR85 crores to INR146 crores. So basically, we are essentially capitizing all of our expenses of development, which if you look at Google platforms, they’re typically expensive, right? So obviously, I can make two arguments here, which is that, you know, I want to understand the logic of doing this every quarter because normally, there would be a balance between capitalizing everything versus expensing it. And when you capitalize something, you’re kind of overstating your profits. So if you can shed light on the reason why everything is being capitalized and the number jumped up by almost INR62 crores here in 1/4. So I’d like to better understand and I know the MAP platform came into being and that’s why this was capitalized, but I’d like to understand more the logic between capitalizing versus expensing. That’s it. Thank you.
Abhishek Jain
Sure, sure. So let me take the question from backwards and then I’ll ask to help me answer on certain questions on it as well. So let me take your last questions, right? The last question was on the balance sheet. The way to read is that we are a SaaS company, right? And you know we have two arms. One is enterprise business and second is a platform business. Enterprise business, whatever we do, as you rightly said, it’s not a more for long-term, it is for here and now which we are serving for our customers and none of those expenses gets capitalized, right, which is the core business or I would say significant portion of the business. Second portion of the business, which you call-out the platform business is for future, right? So we are developing — we are developing a platform, which need to be used for P2D — I won’t say for P2D, but to — in some sense for a very, very long period, right. A very good example of that is the SMSC and the true block that we installed in ’18, ’19, still being — which is still being used without any major upgrades, right? So why asset is right is being put to use now, it takes a certain time, say, maybe six to nine months-to develop a platform. And when we are developing a platform, any sales-based company, I’m sure take it to work-in progress. And once we go-live, we capitalize it. So that has been our philosophy. We see a big uptick in the capitalized value because MAP, which, which is one of the successful of RTS platform for us has gone live. We have seen a very good uptick in the volumes. We touch $1 billion — $1 billion volume in a month-after we go-live and hence you see a higher that you see in our books. But we have a very clear philosophy on what to be capitalized and what not to be capitalized and very clear called out depreciation policies, which gets amortized over the period and very clearly stated in our financials and all the limit areas that you would like to see. Second, the question was on free-cash flow, right? I think it’s not fair to assume deal and we got a catch-up collections. I don’t think so that’s the right thing. We have — this quarter, I don’t think so other than the normal business that you would have done with a partner you mentioned any catch-up we have got from a cash commissions. I think I would say, yes, you’re right that on a YTD basis, we — in H1, the free-cash flow percentage was less, but there is no one-time major long outstanding payment that got collected has impacted our free-cash flow. We do see some kind of little bit of seasonality, sometimes delays and hence, even if I take on a YTE basis, it would be roughly approximately nearly 90% of our PAT, which we have delivered as a free-cash flow from a full-year basis, right. The third, I think we’ll put the position on dividend and buyback, which is returned to shareholders. I think buyback, if I understand correctly, is not anymore a same tax efficiency of tax policies. I think the regulations changed mid of this year. Having said that, we do keep evaluate this every quarter with our Board and we’ll take your recommendation, we will decide whatever Board recommends will take it forward. And the first one, you know, on OTT channels and maybe I’ll help — request Deepak to help — help us here. Deepak, if you’re there.
Deepak Goyal
Yeah, yeah, I’m there, Abhishek. So on OTT side, I would like to say that, yes, there is a WhatsApp did reduce the prices for utility messages, but they also increased the prices for promotional messages. And today, WhatsApp’s more than 85% of the revenue comes from promotional and marketing messages and only 15% to 17% coming from utility messages. So that’s the split. Having said that, you are — we should also remember that most of the utility messages or transaction messages which are getting transacted in India today, most of them are regulated as whether it’s banking or it is insurance sector or it is SEBI, you know, the market alerts and everything. So these message cannot be replaced by any of the OTT players. So they — so they are the — the SMS is going to stay. So there’s no threat from OTT channels over there. The real you know, but other than other than the regulated message, yes, so there is a play in transaction side. And but there’s a very big play on the on the marketing side. And that’s where we are working. So we are, as Abhishek mentioned, it’s not just about with Meta. We are working very closely with Google. That is our next big thing and we are seeing a huge growth over there. And price-wise also is quite comparative compared to meta. Customers are very happy with the kind of response they’re getting and the ROI they are getting. We are building a lot of solutions around that. And we are — currently we are creating stickiness, not only from the from the back you know, back-end side of it where we have map platform deployed with the telcos, but we are also building lot of solutions on-top of it so that we can have a huge stickiness with our enterprise customers and they see the real value over there. So if you really ask me, you know a few months from now, we would see a huge, you know, not only growth but our market-share is also going to increase in a big way.
Sharat Kohli
Can I — can I follow-up with those responses, please?
Abhishek Jain
Sure.
Sharat Kohli
Okay. So first thing, since I have Deepak who just responded. So Deepak, my first question to you is, in terms of market competitiveness, right, I know that you’re saying so my first question is the platform. Is that exclusive to you guys? Like what is stopping route Mobile or you know, or Gov Shop, is this exclusive deployment for Tanla on the telcos platforms or can those guys develop their own map platform and also have their base set-up with the telcos?
Abhishek Jain
Uday would like to take this?
Uday Reddy
Yeah. It’s not exclusive partnership like you know, as you rightly mentioned like they can develop a on their own and deploy. But having said that, I have not seen any telcos developing the platforms and deploy.
Sharat Kohli
Yeah, because I’m just looking at the word which Deepak said stickiness, right? It’s for stickiness to be there. I mean, unless it’s exclusive, tomorrow, like you said, people come and undercut pricing and all that stuff.
Deepak Goyal
Yeah. Stickiness most see, I tell you, okay, let me explain. So when we talk about MAP platform, it gives us end-to-end visibility, right? So we are in control of our — the entire you know the messaging journey, right? So we have a full control over it. And the stickiness come when we have our solutions built over it and customers are tightly integrated to that. Let’s say, for example, we are doing for a couple of metro rail, right? So once you are there, you have — you have closed the customer. So — and there are a lot of journeys we build. So customers are going to move away. I mean, we have recently Axis Bank, they were very happy and we are building lot of journeys for them. So they are not going to — because it’s going to be a huge task to move to someone else, right? So we are integrating a lot of such journeys, lot of such use cases on RCS and on other OTT channels, which is going to give us huge stickiness. And as far as enterprise customers are concerned, they would see the value over it. They would — beyond a point, they’re not going to see a price, what price they are paying, they would say what ROI they’re getting on those channels.
Sharat Kohli
So okay, let me just be more direct, right? So I’m just like we’re tracking this for — I’ve been with you guys for nine years now, right? And there’s been literally no-growth. The only growth that’s really come from — and I get the whole argument volume versus pricing and all that. I’ve been long enough in the stock and this industry globally to understand how this works, right? My only concern is that this was — this is typically our best quarter and our numbers were very disappointing, right? And I understand investments made in employees and all that stuff. It’s actually a very simple question, like what triggers are you going to look for or are you guys looking for so that I have a better understanding where you say, okay, I think the bleeding is stopping. And this is more a general question. It’s obviously not in your control and I understand that. Like when do you see the industry players like stop totally like saying, okay, let’s stop screwing everybody over and let’s like the price stability. Do you see that in the near-future or do you have no visibility on that?
Uday Reddy
No,, let me answer like in the sense, I’m also going to give a direct answer. We are not in control of the industry, okay, right? And the telcos are involved, the tech giants are involved, right? The enterprise are involved, everybody is involved right now. We are not in the control of everyone, right? So this price war happens in a number of times. This is not the first time right. So this is a — so we don’t know when it’s going to stop. So which is not in our control. Let me be very, very clear here.
Sharat Kohli
Okay so, but is there something which sorry go on but
Uday Reddy
Your voice is cracking come back?
Sharat Kohli
Yeah. But I mean typically, you would get some sense, right, in terms of discussions either through your take rate and stuff. I mean, is there — is there an argument to be made that you guys are delivering a certain service, right, like in terms of getting on these servicing guys, making sure the promotion is going up. Is there an argument to be made that you’re taking it goes up to make sure for the shortfall in pricing cut is — are you guys in a position to have that conversation with WhatsApp and other players that, hey, listen, instead of getting a 20% take rate, then we go up to 25% to kind of you know, you guys are still providing a service, right? Is there enough legs there or strength you guys have to have those discussions?
Uday Reddy
So somewhat like WhatsApp, like in the meta, like this — all the decisions are now made at headquarters and also this is a global pricing policy. They’re not targeting just from India or some parts of the world, right? So it’s a global policy. So we don’t have any preview to WhatsApp the strategy. But having said that later they always talk to the large players like us to get the feedback, but it is up to the matter how they won’t implement their strategy.
Sharat Kohli
Okay. And just a follow-up question for Abhishek. Abhishek, out of that INR85 crores going up to INR146 crores, that’s INR62 crores, right? I’ve asked this question in the past and your comment on SaaS platforms that SaaS platform do capitalize. Yes, SaaS platforms do capitalize, but they capitalize the tech part of it. So I had asked these questions about two years ago. What percentage of this capitalization is actual tech versus employees. What is the split?
Abhishek Jain
Yeah. Okay. So you know there are two things, right? One, any platform that you deploy would have A, hardware second licenses. And third, employee cost who would be fully-integrated to develop those software, right, or those platforms. Now it would be unfair that we will capitalize only in hardware and the software and not the muscles behind the mind who is creating that platform. So what as I clearly said, the enterprise business has zero calculation, which is, which is both and valueFirst from an enterprise perspective. Value first as with which is primarily focused more on platform and SaaS. Their only R&D team working on the platform business, those employee costs to the extent they are deployed and working for the platforms are capitalized. For example, any corporate support, any customer service team, those employee costs are not capitalized at all. Now you see this as a bigger number because as I said, any platform, all platform takes a cycle of six to nine months-to develop and get deployed, and that’s why it looks a little bit of a over number, a bigger number. But just the example that I gave right now with a very classic example of TruBlock, for example, which has been deployed for last six-plus years, right, and we have hardly had any major upgrade post that embari in some and so forth. So that’s how we have to see it. Thank you.
Sharat Kohli
That’s fine. And my last response to you on the comment you made on buybacks, I completely disagree with you on that part. I mean, I’ve been in this market for 25 years. I ran a fund. Buybacks are done when management thinks
Uday Reddy
Let’s allow others to ask the question, right? That’s more. Okay.
Operator
Yeah, thank you. Our next question comes from the line of Amit Chandra with HDFC Securities. Please go-ahead.
Amit Chandra
Yes, sir. Thanks for the opportunity. Sir, you mentioned that we have seen the impact on the ILD volumes, you know as there has been a shift to WhatsApp. So earlier — in earlier calls, you mentioned that most of the ILD volumes now are no critical volumes and this shift has almost stagnated or it has been stabilized, but we are still seeing this shift happening. And also if you can give some more color in terms of what proportion of the ILD volumes you still see that as a risk of shift happening to WhatsApp? And also if the shift happens, I know what kind of gross margin impact we see because in general ILD is high gross margin in terms of absolute margin versus in WhatsApp what we make is absolute margin because of the pricing like difference. And secondly on the — once we have seen scale-up on the WhatsApp OTT side, but because of the pricing impact, how it has impacted the gross margins because we have seen the gross margins for the enterprise business also coming off.
Abhishek Jain
Yeah. Hi, hi, Amit. So you’re right, we have called out earlier that we have nearly seen the bottom of out of ILD business, but that’s why we will not comment on the timeline or give a revised scope. So we do believe that there’s nothing further substantial left to see a further drop-out of here, but it’s very difficult to call-out considering what we saw in last couple of months, right? And especially, I do remember that in last quarter or Q1, I have called it out, but this is not what we see. Having said that, what is — what is at least good in some extent is that we see IV volume coming down, it to some extent getting either compensated through an OTT channel shift or through international markets, right? So we are able to maintain and sustain the overall revenue top-line to a very narrow range because of our international business and also the OTT channel shift. Second, on gross margins if you see my gross margin has been in narrow range, right? We still deliver 26% gross margin despite ILD dropping significantly year-on-year, right, and not just quarter-on-quarter. So I would I would say instead of getting to what the price scenario would be because even WhatsApp is evolving from the pricing point-of-view of their structuring point-of-view, I can only say that our endeavor would be to sustain at a similar level of gross margin at overall levels. And I think I don’t see any reason why we should significantly lose that even in the near-future.
Amit Chandra
Okay. And you said that the pricing impact has been there this quarter. So the shift of volumes from — in terms of lower pricing is already there in the quarter. So from here on, from the next quarter onwards, we can see the kind of the volume — huge volume growth happening that is there on the WhatsApp channel that is reflecting on the — on the WhatsApp revenues or still you feel that there is a pricing risk or some kind of adjustment on left on the WhatsApp side? Yeah, that is first. On the enterprise side.
Abhishek Jain
Amit, your specific question? Go-ahead. Sorry.
Amit Chandra
No, no. So on the — on the enterprise side, ex of WhatsApp, the fall has been very steep. Obviously, it has been because of the ILD like declines, but I don’t know, this is like despite the domestic volume going up. So the ILD is causing a lot of pain for us in the last three, four quarters. So obviously, I explained that. But you know, on the WhatsApp side, obviously, we have a lot of triggers, but what was the volume growth, if you can give a some clarity on that so that we can get a picture on how the growth will pan-out in this like next quarter in terms of volume growth. So I think it’s very difficult to segregate this pieces, right?
Abhishek Jain
I can only tell you a couple of things, right. OTT as a channel continues to really do well, right? Our share from OTT channel at 15%, moved up to 20% in the first-half of the year and Q3 we are at 23% at overall mix. I don’t see between any reason why between RCS and WhatsApp and other challenges within OTT, why will they not continue to grow. I think one of the growth trust area is OTT for us and we do strongly believe that both WhatsApp and RCS will continue to do well. It’s difficult to thing what would be the volume growth versus price and so forth. But as we speak, we are able to create a lot of new use cases. We are able to create a lot of promotional differentiation even in various OTT channels that we are working with our customers and we are also trying to create an agnostic platform or agnostic solution for our customers where they can hook in and choose what’s — what channel that they want to use. So I think OTT will continue to be being be promising, including WhatsApp. Your second — yeah, so I think that’s what was your overall question. Did I miss anything? Comment?
Amit Chandra
No, no. Thank you. Thank you. I will back-in the queue. Thank you.
Operator
Thank you. The next question comes from Tejas Shah with Leser Securities. Please go-ahead.
Tejas Shah
Yeah. Hi. I just wanted to understand how we are always trying to — if you see the presentations, we are always saying, if we had Voda phone, then the business would have grown 18%. Now the Vodafone, I think we’ve lost that client, correct?
Abhishek Jain
Yes. Let’s say.
Uday Reddy
Then just to clarify, just to clarify, Tejan. Why, yes, you’re right, Vodafone revenue, which was the VIL deal, let’s not Vodafone because we still continue to have strong relationship. But the firewall deal that we lost do not have revenue base both in-quarter two and quarter three, which means quarter-on-quarter there is no impact of it. Having said that, Q3, which is the same quarter last year, we did have 14 15 worst of business with them and hence to do a right comparative, we do call-out that number saying, if I keep X order 4, our growth rate would happen this. Now, of course, I do understand investor sentiment that matter, Vodafone is no more associated from a deal perspective. But just to bring a clarity to our investors and to shareholders, it becomes important for us to.
Tejas Shah
Okay. And do we see our margins are going up again or this will take around two or 3/4 more.
Abhishek Jain
So gross margin, if you see, had been in the narrow range. If I see last 12 quarters, we have been in the range of 25% to 26.9%, right? So we have been in that bucket of 25% to 27%, I would say. I don’t see — and I do believe that while I don’t give a forward guidance, just to reflect on it that we believe we should be in a narrow range from a gross margin perspective. When it comes to PAT and indirect cost, if you see this time, we were significantly impacted by a one-time ForEx loss, which is the euro currency depreciating significantly. We believe — and if I go back for a longer period that ForEx has neutralized over the period of last four quarters prior to Q3. So I think those impact — the ForEx impact at least should not be there next quarter is what we believe. Great. And that was in the tune of 4.5 years to five years.
Tejas Shah
Okay. And any — I think normally the 3rd-quarter is the best quarter that as a company we get. So going-forward, is there any chance of increasing the top-line somehow wherein — because it’s been stagnant, has been stagnant, either we are losing some customers, gaining some customers, but then we are not moving anywhere in terms of the top-line.
Uday Reddy
No, no, I think Tejas, I would say that the whole discussion with leadership and the management on-the-ground, I think we leave and work only on growth, which is growth. I appreciate your feedback, but I can only say that we all mighty and all mindset behind saying how do we grow, whether platforms, OTT channels to global expansion and so forth. So our endeavor would be to continue to push by, yes, while external challenges are there, our endeavor would be to continue to put through all three levers to ensure that we come back to the road.
Tejas Shah
And if you can throw some light on the — I think gaming waters sold some subsidiary, if you can throw some light on that. I think it’s okay.
Uday Reddy
No, no I don’t think so. We have sold it just a change of ownership. So I think what we believe is that Komoga best fits with Carex in terms of what we deliver and what we serve to our customers. And hence from a synergy perspective, we are just merging it with Carex. So just — it continues to be our own company, our own platform and tool, it’s just that it’s changing head from Tangla platform to, our own 100% entity.
Tejas Shah
Okay. Thank you.
Uday Reddy
Thank you.
Operator
Thank you. The next question comes from Ashish Gupta from AG Capital. Please go-ahead.
Ashish Gupta
Hello, sir, good evening. Sir, I have a very quick question. One is regarding the platform side business. So we are seeing from last few quarters, we are growing somewhere around 15% to 16%. So I wanted to understand your — like some color on whether this growth will be sustainable for two to five years or do you think that it will be tapered off or we can do better than this? That’s my first question
Uday Reddy
So Ashish, we don’t guide, but I can only tell you that platform is one of the growth area where we continue to focus we had two old platforms, TruBlock,, which has been consistently doing well. We launched ATP. We had one couple of customers there. We have — we have launched MAP and we have touched $1 billion — one billion volume of last quarter in a month. So I would say we will continue to focus on our platform. That is an opportunist area for us for future growth. It would be hard for me to put out a number in terms of what would be a growth rate that would be there in near and long-term future.
Ashish Gupta
Yes, sir. No, sir. No problem. So I just wanted some sense that, okay, we could sustain this or do better, but I got your point. Second thing, sir, wanted to understand on the enterprise side of the business and not from our company, but from an industry standpoint, for next two to five years, sir, what is the projected growth rate of that overall industry? If you could shed some light on that, maybe because you would have access to a lot of research reports. So I wanted to sense of how the overall pie will grow. Is it like 5%, 10%, something like that?
Uday Reddy
See, I think it is a little bit dynamic in my if I keep the pricing aside for the second, I think in my view, NLD, which is the local SMS business should grow at a lower double-digit in all sense. But when it comes to platform and OTT, it should definitely continue to grow at a double-digit without any — without any second thought about that, right? So that’s how we see. I think if you ask me, overall industry was primarily impacted by LD and SMS volume continued to do that. And there is definitely was a price sensitivity, which we called out earlier. As soon as we see some normalization there, I think we should see a good growth in the TAM from an overall industry perspective.
Ashish Gupta
Understood. Thank you so much, sir. And last question, sir on the — so assuming the — there is no new platform related employee cost. So sir, do you think that there is a wage inflation could be somewhere around 10% for next two to five years or do you think that this could be lower. I think it’s difficult to call-out at this stage right and say for example we are known for our innovation so we cannot keep our hand tight saying we not innovate anymore, right?
Abhishek Jain
So we’ll take this question. We’ll keep you posted if we see an opportunity for future what we are working on so we’ll keep our investors and stakeholders updated about it, but it’s very difficult to give a very hard number saying we’ll grow. The wage will grow or not grow by this percentage.
Ashish Gupta
Understood. No problem, sir. Thank you so much. That’s what I wanted to check. Thank you.
Uday Reddy
Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management for closing comments.
Ritu Mehta
Thank you, everyone. That was the last question for today. In case we could not take your questions due to time constraint, please reach-out to our Investor Relations team. Good evening.
Operator
Thank you. On behalf of Tanla Platforms Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.