Sify reports Revenues of INR 4683 Million for First Quarter of FY 2018-19
July 25 2018 - 8:42AM
PERFORMANCE HIGHLIGHTS:
- Revenue for the quarter was INR 4683 Million, an
increase of 3% over the same quarter last year.
- EBITDA for the quarter was INR 741 Million, an increase
of 6% over the quarter last year.
- Net Profit for the quarter was INR 201 Million, an
increase of 16% over the same quarter last year.
- CAPEX during the quarter was INR 1001
Million.
- Cash balance at the end of the quarter was INR 1710
Million.
FINANCIAL HIGHLIGHTS
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Sify
Technologies Limited |
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Unaudited Consolidated Income Statement as per
IFRS |
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(In INR
millions) |
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Quarter
ended |
Quarter ended |
Year ended |
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Description |
June |
June |
March |
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2018 |
2017 |
2018 |
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(Audited) |
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Revenue |
4,683 |
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4,555 |
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20,686 |
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3 |
% |
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Cost of Revenues |
(2,845 |
) |
(2,807 |
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(13,435 |
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Selling, General and Administrative Expenses |
(1,097 |
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(1,049 |
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(4,395 |
) |
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EBITDA |
741 |
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699 |
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2,856 |
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6 |
% |
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Depreciation and Amortisation expense |
(387 |
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(461 |
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(1,755 |
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Net Finance Expenses |
(134 |
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(92 |
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(367 |
) |
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Other Income (including exchange gain) |
34 |
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28 |
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190 |
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Other Expenses (including exchange loss) |
(53 |
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- |
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- |
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Profit before tax |
201 |
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174 |
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924 |
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16 |
% |
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Income tax expense |
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Profit for the period |
201 |
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174 |
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924 |
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16 |
% |
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Profit attributable
to: |
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Reconciliation with Non-GAAP measure |
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Profit for the period |
201 |
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174 |
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924 |
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16 |
% |
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Add: |
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Depreciation and Amortisation expense |
387 |
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461 |
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1,755 |
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Net Finance Expenses |
134 |
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92 |
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367 |
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Other Expenses (including exchange loss) |
53 |
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- |
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- |
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Income tax expense |
- |
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- |
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- |
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Less: |
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Other Income (including exchange gain) |
(34 |
) |
(28 |
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(190 |
) |
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EBITDA |
741 |
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699 |
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2,856 |
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6 |
% |
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Quarter ended June 30, 2018 |
Rs Mln |
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Capex |
1,001 |
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Cash Balance |
1,710 |
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MANAGEMENT COMMENTARY Mr.
Raju Vegesna, Chairman, said, “We are at the point where
Domestic enterprises are utilizing multiple services from our
portfolio to navigate the Indian IT landscape. Global MNCs are also
viewing us as a reliable partner to commission their India
projects. The profile of our client engagements is also shifting to
broader implementation across multiple services, translating into
more strategic relationships.”
Mr. Kamal Nath, CEO, said, "Our
sustained focus on our “Cloud@Core” service lines, along with the
investments being made around this model, is adding a distinct
character to our revenue, profitability and new order book. Clients
are seeing the merits in our vertical-based business strategy and
the flexibility to opt for either a “subscription” or a “build”
model. Our positioning as a digital transformation partner, our
comprehensive set of services and demonstrated speed-to-market are
key differentiators that will propel our growth.”
Mr. M P Vijay Kumar, CFO, said,
“Our business is supported by our continuing investment in
infrastructure, tools and people to augment our growing portfolio
of services. While we continue to exert greater fiscal discipline,
our mix of DC and Network value added services should help broaden
our revenue streams.
Our cash balance at the end of the quarter
stands at INR 1710 Million”
- Revenue from Telecom centric services grew by 18% over the same
quarter last year.
- Segment-wise, revenue from Data and Managed Services grew 27%
while revenue from the Wholesale Voice business grew by 2% over the
same quarter last year.
- The Telecom Centric Services added 117 new customers in the
quarter.
- Revenue from Data Center centric IT Services fell by 14% during
the same quarter last year.
- Segment-wise, revenue from Data Center Services and Cloud and
Managed Services grew by 28% while the revenue from Technology
Integration services and Applications Integration Services fell by
41% due to customer specific projects under implementation.
- Data Center centric IT Services added 87 new customers in the
quarter.
BUSINESS HIGHLIGHTS
GROWTH DRIVERS
Digital transformation in India market continues
to accelerate because of Government programs as well as Private
initiatives aimed towards citizens and consumer experience. In line
with this trend, our investments and initiatives are focused on
creating infrastructures and services which has “Cloud @core” as
the central theme. These investments and initiatives cut across
Data Center, Cloud, Network and Applications.
- Sify expanded capacity at its Data Center at Mumbai to cater to
increased demand from the BFSI, eCommerce and Government
clients.
- Sify launched Hosting and Managed Services on Azure Stack
services, a Hyper Converged Cloud Platform from its Data Centers.
The platform also provides direct connectivity to Azure Cloud
through Express Route to enable a hybrid cloud environment.
- Sify launched Oracle’s Exadata as a Service, hosted from its
private cloud, incorporating the benefits of Cloud with Managed
Services.
- Sify established a strategic partnership with Nutanix to enable
customers to migrate from legacy platforms to hyper converged
infrastructures.
- Sify augmented the CDN portfolio by expanding its support for
the AWS CloudFront service, to support small and medium segment
customers.
- Sify’s upgrade to 400G ready fiber networks will cater to
demand from multiple industry verticals for their data-rich telecom
requirements. The SD-WAN and network security services portfolio
will complement this upgrade.
KEY WINS
- An International telecom player, an upcoming payment bank, a
large mobile wallet player, the insurance division of a large
Public sector bank, and a domestic appliance major are some of the
key customers to have subscribed for capacity at Sify’s Data
Centers.
- A Healthcare major has outsourced their complete DC and DR
operations to Sify, to be run on hybrid cloud
environment.
- A State Government which is aggressively implementing Digital
India and Smart Cities concepts empanelled Sify for Microsoft
Azure-based Services to support their Government Community
Cloud.
- Sify also signed a multi-year contract to build and operate a
concurrently-maintainable Data Center for a State Government, on
Nutanix’s hyper-converged infrastructure platform.
- One of the State Governments also contracted Sify as their
system integrator for a complete revamp and physical expansion of
their Data Center under the National eGovernance Plan. This
contract involves design and implementation of the Data Center and
Private Cloud.
- In one of the largest multi-year hyper converged infrastructure
deals, the Capital Markets division of one of the country’s largest
Public-sector banks contracted for multiple services
implemented at two major DC locations.
- A large Public-sector Insurance company contracted to revamp
and implement security services in line with the regulatory
authority’s new guidelines.
- A market leader in packaged foods in India and a Public-sector
bank have signed network outsourcing contracts, including network
management, security, enterprise-mobility and connectivity.
- A pharmaceutical major has contracted for a complete network
transformation that will include the deployment of a secure managed
service to support their hybrid IT strategy.
- A global CDN player has also signed up to deploy nodes across
India to cater to the tremendous growth of data traffic out of the
country.
AWARDS/RECOGNITIONS
- Sify has been elevated to the position of Platinum partner by
Dell and Premier partner by VMware for Virtualisation and
Orchestration.
- Sify has been also been recognised as an Emerging partner for
rendering services by Nutanix in India.
CORPORATE COMMENTARY
As informed earlier, Dr. Siripurapu Kesava Rao,
Director has resigned from the Board due to ill-health. The Board
has commenced the search for his successor.
About Sify TechnologiesSify is
the largest ICT service provider, systems integrator, and
all-in-one network solutions company on the Indian subcontinent.
We’ve also expanded to the United States, with headquarters in the
heart of California’s Silicon Valley.Over 8500 businesses have
become Sify customers. We also partner with other major network
operators to deliver global network solutions. Our customers can
access Sify services via India’s largest MPLS network. Among the
very few Enterprise class player in India, Sify, today has presence
in more than 1550 cities in India and in North America, the United
Kingdom and Singapore. Sify, www.sify.com, Sify Technologies and
www.sifytechnologies.com are registered trademarks of Sify
Technologies Limited
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The forward-looking
statements contained herein are subject to risks and uncertainties
that could cause actual results to differ materially from those
reflected in the forward-looking statements. Sify undertakes no
duty to update any forward-looking statements.
For a discussion of the risks associated with
Sify’s business, please see the discussion under the caption “Risk
Factors” in the company’s Annual Report on Form 20-F for the year
ended March 31, 2018, which has been filed with the United States
Securities and Exchange Commission and is available by accessing
the database maintained by the SEC at www.sec.gov, and Sify’s other
reports filed with the SEC.
For further information, please contact:
Sify Technologies
Limited Mr. Praveen Krishna Investor Relations &
Public Relations +91 44 22540777 (ext.2055)
praveen.krishna@sifycorp.com |
20:20
Media Nikhila Kesavan +91 9840124036
nikhila.kesavan@2020msl.com |
Grayling Investor
Relations Shiwei Yin +1-646-284-9474
Shiwei.Yin@grayling.com |
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