Sify reports Revenues of INR 5732 Million for Third Quarter of FY 2018-19
January 31 2019 - 8:11AM
PERFORMANCE HIGHLIGHTS:
- Revenue for the quarter was INR 5732 Million, an increase of
10% over the same quarter last year.
- EBITDA for the quarter was INR 788 Million, an increase of 12%
over the same quarter last year.
- Net Profit for the quarter was INR 312 Million, an increase of
9% over the same quarter last year.
- CAPEX during the quarter was INR 1181 Million.
- Cash balance at the end of the quarter was INR 1262
Million.
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman,
said, “Enterprises that seek out an IT partner look for relevance,
comprehensiveness and cost-effectiveness. Sify has consistently
delivered the last two, leveraging our complete ICT eco-system and
quicker turnaround time. As Enterprises increase focus on their
core area of operations, our focus is now to build relevant
vertical strengths across industries. As the Government’s
digitization moves gather speed, we should see broader demand for
our service bouquet.”
Mr. Kamal Nath, CEO, said,
“There is a consistent, increasing demand from Enterprises and
Government to move their workload to Cloud. In addition, the
inevitability of data residency will demand a robust network to
support such a transition. These are reflecting positively on
demands for our “Cloud@Core” service lines and a larger offtake of
our network capacity. Our focus on building vertical strengths is
also being sounded out by clients from different industries and is
giving a distinct character to our revenue mix, profitability and
order book.”
Mr. M P Vijay Kumar, CFO, said,
“Our strong Network and Data Center service lines are seeing a
logical offtake in a tightening market place. While we continue to
pursue investments in Data Center infrastructure, we are also
seeing clients increase their engagement across our multiple
service lines. This, along with our fiscal prudence, will help us
broaden our revenue base.
Our cash balance at the end of the quarter
stands at INR 1262 Million.”
FINANCIAL HIGHLIGHTS
Unaudited Consolidated Income Statement as per
IFRS |
|
|
(In INR
millions) |
|
|
|
|
Quarter
ended |
Quarter
ended |
Quarter
ended |
Description |
December |
December |
September |
|
2018 |
2017 |
2018 |
|
|
|
|
|
|
|
|
Revenue |
5,732 |
|
5,228 |
|
5,509 |
|
Cost of Revenues |
(3,775 |
) |
(3,469 |
) |
(3,465 |
) |
Selling, General and Administrative Expenses |
(1,169 |
) |
(1,057 |
) |
(1,273 |
) |
|
|
|
|
EBITDA |
788 |
|
702 |
|
771 |
|
|
|
|
|
Depreciation and Amortisation expense |
(368 |
) |
(396 |
) |
(384 |
) |
Net Finance Expenses |
(175 |
) |
(62 |
) |
(175 |
) |
Other Income (including exchange gain) |
67 |
|
41 |
|
67 |
|
Other Expenses (including exchange loss) |
|
|
(26 |
) |
|
|
|
|
Profit before tax |
312 |
|
285 |
|
253 |
|
Income tax expense |
|
|
|
Profit for the period |
312 |
|
285 |
|
253 |
|
|
|
|
|
Profit attributable
to: |
|
|
|
Reconciliation with Non-GAAP measure |
|
|
|
Profit for the period |
312 |
|
285 |
|
253 |
|
Add: |
|
|
|
Depreciation and Amortisation expense |
368 |
|
396 |
|
384 |
|
Net Finance Expenses |
175 |
|
62 |
|
175 |
|
Other Expenses (including exchange loss) |
- |
|
- |
|
26 |
|
Income tax expense |
|
|
- |
|
Less: |
|
|
|
Other Income (including exchange gain) |
(67 |
) |
(41 |
) |
(67 |
) |
|
|
|
|
EBITDA |
788 |
|
702 |
|
771 |
|
|
|
|
|
|
|
|
|
BUSINESS HIGHLIGHTS
- Revenue from Data Center centric IT Services grew by 2% over
the same quarter last year.
- Segment-wise, revenue from Data Center Services grew by 34%,
Cloud and Managed Services grew by 78% and Technology Integration
Services grew by 113% respectively, while Applications Integration
Services fell by 70%. This change should be viewed in light of the
delivery of a large government contract last year.
- Revenue from Telecom centric services grew by 18% over the same
quarter last year.
- Segment-wise, revenue from Data and Managed Services grew 19%
while revenue from the Voice business grew by 14% over the same
quarter last year.
GROWTH DRIVERS
The Indian IT market is undergoing big changes
in consumption pattern of services. With start-ups driving the
disruptions and demand from Tier II & III cities picking up,
Enterprises will rely heavily on automation to overcome the
demographic challenges. AI, Big Data analytics, IoT and Machine
Learning are increasingly becoming the tools-of-choice to
accelerate their go-to-market. All of these will require a flexible
and agile platform to keep pace with the business changes and
growth. Cloud, Data Centers and hyperscale Network are the demands
that Sify seeks to cater to.
KEY WINS
A consolidated list of the key sign ups during the quarter is as
below:
- 7 customers signed up to have their workload migrated from
their on-premise DC to multiple clouds like Sify Cloud Infinit, AWS
and Azure. These cover key verticals such as Government, ITeS,
Insurance, Manufacturing, Food, Health, Agri-sciences, Power
generation and transmission, Microfinance and Pharmaceuticals.
- 8 customers have signed up with Sify for greenfield cloud
project implementation from verticals such as Personal care, NBFC,
Manufacturing, Dairy startups, Power transmission and Personal
care.
- 26 new customers signed up for services like DRaaS, PaaS and
IaaS.
- 1 customer moved their entire workload from a competitor DC to
Sify’s DC while 6 customers migrated their work loads from their
on-premise DC to Sify DC.
- These were across verticals like Automobile Manufacturing,
Banking, Infrastructure, Analytics management, Mobility service and
Hosting services.
- 6 customers from across Government, Banking, Food processing
and NBFC signed up to have Private Cloud commissioned at their Data
Center.
- 5 customers signed up to have their Disaster Recovery Centers
commissioned.
- 10 customers signed up for Managed Services from across
banking, housing finance, an electronic subsidiary of a State
Government, IT consulting and Food processing.
- Sify successfully conducted the first-ever online examination
for one of the country’s defense establishment.
- A state department signed up to conduct online examination for
more than 3.5 million candidates.
- A PSU Energy major signed on for Learning Technology platform
and solutions.
- 15 new customers signed up for Security Services.
- The Telecom Centric Services added 502 new customers in the
quarter.
- The business signed up a key customer in the Energy &
Exploration industry.
- 2 PSUs in the banking industry signed up for an MPLS network to
connect their branch locations.
- Sify's managed and secure SDWAN service saw 2 major wins across
BFSI and Manufacturing segment.
- A leading player in Pharmaceuticals outsourced its Wide Area
Network to Sify.
- The Intercloud connectivity segments acquired customers across
logistics, Retail, Insurance and Media.
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 10000 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 1600 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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