Sify reports Revenues of INR 5259 Million for First Quarter of FY 2020-21
July 28 2020 - 7:32AM
A photo accompanying this announcement is
available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/26b5b102-db44-4813-af80-bc90a0f13684
MANAGEMENT
COMMENTARYMr. Raju Vegesna, Chairman,
said, “As the world comes to terms with the new normal, it is
becoming increasing clear that investment in business continuity
and highly automated processes is no longer an option. During this
period, we have benefited from our ongoing efforts to automate a
majority of our Network, Data Center and service escalation
processes. Our services, having stood the test of this pandemic,
are now more relevant than ever in a rapidly evolving IT
landscape.
True to our business promise, I would like to
assure our clients that we will continue to extend all support in
keeping them ahead.”
Mr. Kamal Nath, CEO, said,
“Over the last quarter, we, along with our customers have learned
to adapt to new modes of doing businesses. Our “Cloud@core”
products and services are emerging as the most relevant to the
altered ground realities.
Previously cloud hostile and cloud sceptical
customers have opened up conversations about cloud adoption to
de-risk their dependency on on-premise IT. Our cloud portfolio,
together with our cloud adjacent Data Centers are the perfect
solution for customers looking for quicker adoption of Hybrid
IT.”
Mr. M P Vijay Kumar, CFO, said,
“The operating performance has been good despite the challenges of
the pandemic. We continue to stay focused on ensuring liquidity and
fiscal discipline. We will continue to exercise caution on our
Capex plans and making aggressive curbs on discretionary spending
for the remainder of the year, while investing more on people,
tools and our digital transformation capabilities.
Cash balance at the end of the quarter was INR 3568
Million”.
FINANCIAL HIGHLIGHTS
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 |
Quarter ended |
Year ended |
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Description |
June |
June |
March |
March |
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2020 |
2019 |
2020 |
2020 |
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Revenue |
5,259 |
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5,518 |
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5,736 |
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22,952 |
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Cost of Revenues |
(3,103 |
) |
(3,550 |
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(3,465 |
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(14,365 |
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Selling, General and Administrative Expenses |
(1,003 |
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(1,094 |
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(1,233 |
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(4,511 |
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EBITDA |
1,153 |
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874 |
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1,038 |
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4,076 |
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Depreciation and Amortisation expense |
(658 |
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(506 |
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(654 |
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(2,291 |
) |
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Net Finance Expenses |
(236 |
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(64 |
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(281 |
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(860 |
) |
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Other Income (including exchange gain) |
15 |
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28 |
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67 |
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97 |
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Other Expenses (including exchange loss) |
(8 |
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(12 |
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- |
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(3 |
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Profit before tax |
266 |
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320 |
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170 |
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1,020 |
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Income tax expense |
(94 |
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(104 |
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(36 |
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(314 |
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Profit for the period |
172 |
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216 |
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134 |
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706 |
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Profit attributable to: |
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Reconciliation with Non-GAAP measure |
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Profit for the period |
172 |
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216 |
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134 |
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706 |
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Add: |
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Depreciation and Amortisation expense |
658 |
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506 |
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654 |
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2,291 |
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Net Finance Expenses |
236 |
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64 |
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281 |
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860 |
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Other Expenses (including exchange loss) |
8 |
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12 |
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- |
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3 |
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Income tax expense |
94 |
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104 |
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36 |
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314 |
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Less: |
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Other Income (including exchange gain) |
(15 |
) |
(28 |
) |
(67 |
) |
(97 |
) |
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EBITDA |
1,153 |
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874 |
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1,038 |
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4,076 |
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BUSINESS HIGHLIGHTS
A photo accompanying this announcement is
available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/b028ec63-3570-4440-8870-f95f750db6ff
GROWTH DRIVERS
The pandemic has accelerated the primary growth
drivers in the market for cloud adoption, led by digital
initiatives and transformation. This trend is triggering movement
of workloads from on-premise Data Centers to hyperscale Public
Cloud and hosted Private Cloud in varied degrees, based on the
digital objectives of the Enterprise. This results in
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
Highlights of our major wins in the quarter include:
- Customers choosing Sify for
migration of their on-premise data center to multi-cloud platforms
like Cloudinfinit, AWS and Azure. They also entrusted Sify with
management and security.
- Customers choosing Sify as their DC Hosting partner as they
embrace a hybrid cloud strategy.
- Customers choosing Sify as their Digital services partner.
- Customers choosing Sify as their Network Transformation and
Management partner as they migrate to Cloud-ready
networks.
A consolidated summary of the key highlights during the quarter
is noted below:
Data Center
centric IT Services highlights include:
- 5 customers contracted to have
their workload migrated from their on-premise DC to multi-cloud,
including one of India’s leading fashion brands, a central
government body engaged in reskilling, 2 non-banking finance
companies and an NGO working for primary education in India.
- 2 customers contracted for
greenfield Cloud implementation, among them a non-banking finance
company and multi-faceted industrial group.
- 6 new customers signed up for
multiple services like AWS CDN, DRaaS, PaaS and IaaS from verticals
such as Education, Insurance, Non-banking Finance and Private
Equity.
- 4 customers migrated from their
on-premise Data Center to Sify DC. These were across Banking, IT
and Media verticals.
- The Government of India signed up
for a multi-year, multi-services greenfield deployment of DR.
- 6 new customers signed up for
modernization of their DC.
- 8 customers contracted with Sify
for Cloud managed services from verticals such as Power, IT and
Government.
- 2 major customers signed multi-year
contracts for managed security services.
- 2 customers signed up for supply
chain integration on the Cloud.
- An insurance major signed up for
their DC infra refresh.
Network centric Services
highlights include:
- 54 new customers contracted for various Network centric
services in the quarter.
- One of India’s largest private home-financing players signed up
for the complete outsourcing and transformation of their
Network.
- A major niche chemical manufacturing player and a pharma major
contracted with Sify for managed and secure SD-WAN services.
About Sify TechnologiesSify
Technologies is India’s most comprehensive ICT service &
solution provider. With Cloud at the core of our solutions
portfolio, Sify is focussed on the changing ICT requirements of the
emerging Digital economy and the resultant demands from large, mid
and small-sized businesses.
Sify’s infrastructure comprising the largest
MPLS network, top-of-the-line DCs, partnership with global
technology majors, vast expertise in business transformation
solutions modelled on the cloud make it the first choice of
start-ups, incoming Enterprises and even large Enterprises on the
verge of a revamp.
More than 10000 businesses across multiple
verticals have taken advantage of our unassailable trinity of Data
Centers, Networks and Security services and conduct their business
seamlessly from more than 1600 cities in India. Internationally,
Sify has presence across 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, 2019, 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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