Sify reports Revenues of INR 21547 Million for Financial Year 2018-19
April 22 2019 - 8:23AM
EBITDA for the year stood at INR 3122
MillionNet Profit for the year was INR 1069
MillionThe Board has recommended a dividend of
12%
PERFORMANCE HIGHLIGHTS:
- Revenue for the year was INR 21547 Million, an increase of 4 %
over last year.
- EBITDA for the year was INR 3122 Million, an increase of 9 %
over last year.
- Net Profit for the year was INR 1069 Million, an increase of 16
% over last year.
- CAPEX for the year was INR 4051 Million.
- Cash balance at the end of the year was INR 2248 Million.
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman,
said, “The last two years has seen private Indian enterprises, and
the government, rethink the role of IT within their organisation.
While there is continued aggression in their adoption, we are
seeing a distinct maturity in the profile of services being
contracted. The wisdom to contract with a single service provider
is also allowing global MNCs entering India to shrink their
go-to-market time.
Our focus, this upcoming year, will be to
solicit disruptive contracts that would help us build a unique
portfolio of knowledge-driven Cloud and Managed services”
Mr. Kamal Nath, CEO, said,
"With Cloud@Core at the heart of most of our service lines, over
the past year, we have been able to establish our strategic
relevance to customers in their Digital Transformation journey.
Today we are one of the few Indian companies which serves the
entire cloud spectrum of Cloud Enabling, Cloud Inspired, Cloud Pure
and Cloud Enhanced services.
These have also strongly supported the growth of
our Telecom business around the SD WAN, Cloud Interconnects and
Intelligent Edge networks.”
Mr. M P Vijay Kumar, CFO, said,
“Our revenue growth is lower than the prior year due primarily to
the expiration of a large government multi-year services
contract. Excluding this impact, the overall revenue
growth was in line with last year’s growth. In line with our
focus on cash management, we are also taking a conscious business
decision to reduce exposure to contracts with extended working
capital cycle. The network and data center services continue to see
demand and we are expanding on the capacity. We continue to make
investments in our people and tools that complement digital
transformation services for our clients. We will, as in the past,
keep a tight leash on our costs and the turnaround time.
The Board has recommended a dividend of 12 %
subject to approval from shareholders.
Cash balance at the end of the year was INR 2248
Million”
FINANCIAL HIGHLIGHTS
Unaudited Consolidated Income Statement as per
IFRS |
|
|
|
(In INR
millions) |
|
|
|
|
|
Quarter ended |
Quarter ended |
Year ended |
Year ended |
Description |
March |
March |
March |
March |
|
2019 |
2018 |
2019 |
2018 |
|
|
|
|
(Audited) |
|
|
|
|
|
Revenue |
5,623 |
|
6,062 |
|
21,547 |
|
20,686 |
|
Cost of Revenues |
(3,546 |
) |
(4,093 |
) |
(13,602 |
) |
(13,435 |
) |
Selling, General and Administrative Expenses |
(1,255 |
) |
(1,231 |
) |
(4,823 |
) |
(4,395 |
) |
|
|
|
|
|
EBITDA |
822 |
|
738 |
|
3,122 |
|
2,856 |
|
|
|
|
|
|
Depreciation and Amortisation expense |
(394 |
) |
(374 |
) |
(1,533 |
) |
(1,755 |
) |
Net Finance Expenses |
(199 |
) |
(139 |
) |
(682 |
) |
(368 |
) |
Other Income (including exchange gain) |
77 |
|
36 |
|
217 |
|
190 |
|
Other Expenses (including exchange loss) |
- |
|
- |
|
(52 |
) |
- |
|
|
|
|
|
|
Profit before tax |
306 |
|
261 |
|
1,072 |
|
923 |
|
Income tax expense |
(3 |
) |
(0 |
) |
(3 |
) |
(0 |
) |
Profit for the period |
303 |
|
261 |
|
1,069 |
|
923 |
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
Reconciliation with Non-GAAP measure |
|
|
|
|
Profit for the period |
303 |
|
261 |
|
1,069 |
|
923 |
|
Add: |
|
|
|
|
Depreciation and Amortisation expense |
394 |
|
374 |
|
1,533 |
|
1,755 |
|
Net Finance Expenses |
199 |
|
139 |
|
682 |
|
368 |
|
Other Expenses (including exchange loss) |
- |
|
- |
|
52 |
|
- |
|
Income tax expense |
3 |
|
0 |
|
3 |
|
0 |
|
Less: |
|
|
|
|
Other Income (including exchange gain) |
(77 |
) |
(36 |
) |
(217 |
) |
(190 |
) |
EBITDA |
822 |
|
738 |
|
3,122 |
|
2,856 |
|
|
|
|
|
|
|
|
|
|
|
BUSINESS HIGHLIGHTS
- Revenue from Data Center centric IT
Services fell by 7 % over last year.
- Segment-wise, revenue from Data
Center Services grew by 29 %, Cloud and Managed Services grew by 56
% and Technology Integration Services grew by 1 %, while
Applications Integration Services fell by 53 %.
- Revenue from Telecom centric
services grew by 16 % over last year.
- Segment-wise, revenue from Data and
Managed Services grew by 19 % while revenue from the Voice business
grew by 9 % over last year.
GROWTH DRIVERS
The primary growth drivers in the markets are
cloud adoption led by digital initiatives and transformation. This
trend is triggering movement of workloads from on-premise Data
Centres to hyperscale Public Cloud and hosted Private Cloud in
varied degrees, based on the digital objectives of the enterprises.
This in turn, is triggering transformation of the traditional
network architecture, and transformation at the edge which connects
the end user. The need for digital services like analytics, data
lakes, IOT etc are shifting the balance to adoption of hyperscale
Public Cloud vs Private cloud. Collectively, these trends are
generating opportunities for full scale Cloud, DC and Network
service providers with digital services skills.
KEY WINS AND BUSINESS HIGHLIGHTS
- 25 prominent customers signed to have their workload migrated
from their on-premise DC to multiple Clouds platforms including
Sify Cloud Infinit, AWS and Azure. These cover key verticals, such
as Power, Insurance, IT, Logistics, Real estate, Media, Healthcare,
Mobility solutions, Enterprise messaging and IT risk
management.
- 21 major logos signed up for greenfield Cloud implementation
from verticals such as eCommerce Logistics, Investment Finance, IT,
Manufacturing, Retail, Consulting and Healthcare among others.
- 16 major signups were recorded for Disaster Recovery as a
Service. Among them were clients from retail Home Appliances,
Automobile Finance, Automation Design, IT and Home Finance.
- 11 customers moved from competitor DC to Sify DC while 10
customers moved from their on-premise DC to Sify DC across Power,
IT, Retail, Media and Communications and Healthcare verticals.
- 3 State Governments and a SmartCity in Central India contracted
to have Private Cloud commissioned at the DCs under the National
eGovernance Plan.
- 30 prominent logos from across Manufacturing, Power, Energy, IT
infra and Government signed up for SAP services.
- 3 regional TV networks and one Daily publication signed up for
CDN services on AWS.
- Multiple companies signed up for security services from among a
Hospitality, Banking, Insurance, Digital wallets, Technology and
Logistics sectors.
- The online assessment business successfully conducted more than
3.5 million Cloud based tests.
- The Telecom centric Services added 962 new
customers in the year across various verticals and segments.
- During the year, there was significant expansion of the next
generation fiber access networks across 4 key markets covering Data
Centers and SEZs. The expansion is being driven by the demand from
customers to connect to cloud and data centers as they embark on
the cloud transformation journey.
- During the year, Sify expanded its GlobalCloudConnect (GCC)
platform and will now offer private connections to Google Cloud in
India, in addition to AWS and Microsoft Azure. Enterprises can now
easily connect from 47 data centers and their offices in over
1600 cities across India. Further expansion of the AWS
interconnects was completed during the year providing customers
with more choices.
- During the year, the business launched its Managed and secure
SDWAN service and is seeing increasing demand from customers for
this service as they transform their traditional enterprise WAN to
a cloud centric WAN. Some prominent names added to their rooster
include a Security and Cash logistics, a Public Sector Financial
Institution focused on small and medium industries, a government
owned Export Credit Insurance company and one of the largest Public
Sector Power generation and distribution companies.
- The business saw growth in its Edge
Connect portfolio (Intelligent Edge) with customers increasingly
viewing the edge as a key area of innovation in a digital
enterprise. Key wins include a large German engineering
conglomerate, one of India’s largest manufacturing companies, a
leading FMCG brand and the back office of a large US based
bank.
- The business also saw steady
progress in its IoT business. Key wins included contracts from a
logistics provider and a farm equipment manufacturer in India.
- The business also won key contracts
during the year from global customers including two new CDNs that
have deployed in India, repeat orders for large Data Center
Interconnect from two leading global content providers and a
contract from a global cloud-based security provider for deployment
in India.
About Sify Technologies
Sify is the largest ICT service provider, system
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 players in India, Sify, today has presence in more
than 1600 cities in India and in North America, the United Kingdom
and Singapore.
Sify, 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 |
Grayling
Investor Relations |
20:20
Media |
Mr. Praveen Krishna |
|
|
Investor Relations &
Public Relations |
Shiwei Yin |
Nikhila Kesavan |
+91 44 22540777
(ext.2055) |
+1-646-284-9474 |
+91 9840124036 |
praveen.krishna@sifycorp.com |
Shiwei.Yin@grayling.com |
nikhila.kesavan@2020msl.com |
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