UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2023
Commission File Number 000-27663
SIFY TECHNOLOGIES LIMITED
(Translation of registrant’s name into
English)
Tidel Park, Second Floor
No. 4, Rajiv Gandhi Salai, Taramani
Chennai
600 113, India
(91) 44-2254-0770
(Address of principal executive office)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F. Form 20-F þ
Form 40 F ¨
Results of Operations and Financial Condition
On October 20, 2023, Sify Technologies Limited
announced its consolidated results under the International Financial Reporting Standards (IFRS) for the second quarter of fiscal year 2023-24.
A copy of the press release is attached hereto
as Exhibit 99.1, which exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Signature
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: October 20, 2023
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For Sify Technologies Limited |
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|
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By: |
/s/ M P Vijay Kumar |
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Name: M P Vijay Kumar |
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Title: Chief Financial Officer |
Exhibits filed with this Report
Exhibit 99.1
For immediate release Chennai, India
| EARNING CALLS DETAILS |
Oct 20, 2023| 8:30 AM ET |
To join: Toll Free: 888-506-0062, International:
973-528-0011, Participant Access Code: 219546
On the call: Mr. Raju Vegesna, Chairman of
the Board, Mr. M P Vijay Kumar, Executive Director & Group CFO and Mr. Kamal Nath, Chief Executive Officer
Live webcast: https://www.webcaster4.com/Webcast/Page/2184/49194
Archives: Toll Free:
877-481-4010, International: 919-882-2331, Replay Passcode: 49194.
Replay available until Friday, October
27, 2023
Sify reports Consolidated
Financial Results for Q2 FY 2023-24
Revenues of INR 8791
Million. EBITDA of INR 1519 Million.
HIGHLIGHTS
| · | Revenue
was INR 8,791 Million, an increase of 11% over the same quarter last year. |
| · | EBITDA
was INR 1,519 Million, an increase of 1% over the same quarter last year. |
| · | Profit
before tax was INR 52 Million, a decrease of 76% versus the same quarter last year. |
| · | Profit
after tax was INR 15 Million, a decrease of 87% versus the same quarter last year. |
| · | CAPEX
during the quarter was INR 1,797 Million. |
| (IN INR MILLION) | |
30.09.2023 | | |
31.03.2023 | |
| EQUITY | |
| 22,040 | | |
| 17,146 | |
| BORROWINGS | |
| | | |
| | |
| Long term | |
| 16,972 | | |
| 13,818 | |
| Short term | |
| 6,557 | | |
| 6,662 | |
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman,
said, “India’s Data Policy is entering the final phase of being adopted into law. This will give shape and clarity to data
ecosystem and formalize regulation around Data security, which will help accelerate investment in India’s Data Center landscape.
This will also lead to India being viewed as a more viable interconnect point between Asia and the Middle East by international connectivity
players.
Enterprises exploring
digital transformation and government entities looking to automate social welfare systems will be
an important target audience for Sify’s digital transformation tools and services”.
Mr. Kamal Nath,
CEO, said, “As Enterprises pursue their digital transformation and digitalization objectives, they are also re-calibrating
their digital infrastructure across hybrid cloud, network, security and edge infrastructures. Customer experience, business continuity,
cyber security, application modernization and overall adoption of AI models are the prime drivers for this recalibration.
Our infrastructure
investments and services portfolio are fundamentally aligned to meet the customer goals. Simultaneously, we are continuously engaged
with our customers to identify their specific needs and selectively recalibrate our propositions to support the same”.
Mr. M P Vijay
Kumar, ED & Group CFO, said, “We continue to make substantial investment in capacity creation and people to build skill
sets for IT services opportunities we foresee, given the digital transformation engagements that
India Inc is actively pursuing. This has led to the accompanying depreciation and interest cost, reflecting on our net profit.
We are also actively
scaling up our sustainable measures across all businesses, especially our Data Centers.
The cash balance
at the end of the quarter was INR 7570 Million”.
BUSINESS
HIGHLIGHTS
| · | The
Revenue split between the businesses for the quarter was Data Center colocation services
31%, Digital services 28% and Network services 41%. |
Business
Revenue
(INR
Millions) | |
Q2 FY 2023-24 | | |
Q2 FY 2022-23 | | |
FY 2022-23 | | |
% Growth
Q2 2023-24 vs
Q2 2022-23 | |
| Data Center services | |
| 2717 | | |
| 2547 | | |
| 10125 | | |
| 7 | |
| Digital Services | |
| 2503 | | |
| 2004 | | |
| 9988 | | |
| 25 | |
| Network services | |
| 3571 | | |
| 3387 | | |
| 13291 | | |
| 5 | |
| TOTAL | |
| 8791 | | |
| 7938 | | |
| 33404 | | |
| | |
| · | During
the quarter, Sify added 1.2 MW of new Data Center capacity. |
| · | As
on September 30, 2023, Sify has deployed 6535 SDWAN service points across the country. |
| · | Sify
now provides services via 952 fiber nodes across the country, a 14% increase over the same
quarter last year. |
| · | During
the quarter, Sify invested USD 1.5 Million in start-ups in the Silicon Valley area as part
of our Corporate Venture Capital initiative. To date, the cumulative investment stands at
USD 7.07 Million. |
CUSTOMER
ENGAGEMENTS
Among
the most prominent new contracts during the quarter were the following:
Data Center Services
| · | Two
public sector and one private bank signed up for colocation space. |
| · | A
privately held international stock broking firm entering India contracted for colocation
space. |
| · | A
private bank migrated from their on-premise Data Center to Sify Data Center. |
| · | A
private telecom player will set up their disaster recovery unit at one of Sify’s locations. |
| · | One
of India’s largest private bank contracted for DC expansion and refresh. |
Digital services
| · | A
state government welfare department and two private enterprises signed up to migrate from
their on-premise DC to Sify’s Cloudinfinit platform, along with managed services. |
| · | A
NBFC, a health solutions player, an insurance broker and a steel major contracted for Sify
greenfield cloud implementation. |
| · | A
division of a state government signed up for a complete platform migration and managed services. |
| · | One
of the larger online insurance policy platforms, a hosiery major, one of the oldest content
service providers, a software player and a citizen service provider signed up for Sify’s
digital services. |
| · | The
technology partner of the Union government, a State government data center, the power distribution
arm of another state government, a private power transmission player, a private insurance
major, a white goods, an industrial chemical manufacturer and an insurance information bureau
signed up for managed services. |
| · | More
than a million online assessments were conducted for an autonomous banking institute and
a government service selection platform. |
| · | An
international power products manufacturer and another refrigeration major signed up for Sify’s
cloud-based supply chain solution. |
Network Services
| · | A
leading Indian airline has contracted for the management of its entire network infrastructure,
including Network Operations Center. |
| · | A
heavy machinery distributor and a Spirits major contracted for managed and secure SD WAN. |
| · | Sify
also contracted for network expansion with multiple prominent banks, a tyre manufacturer
and a logistics major. |
| · | One
of the global outsourcing majors, a personal care conglomerate and an Edutech startup signed
up for hosted contact and CPaaS services. |
| · | During
the quarter, Sify activated its VNO license to support SIP trunking in India. |
FINANCIAL
HIGHLIGHTS
Unaudited
Consolidated Income Statement as per IFRS
(In
INR millions)
| | |
Quarter ended | | |
Quarter ended | | |
Quarter ended | |
| | |
September | | |
September | | |
June | |
| Description | |
2023 | | |
2022 | | |
2023 | |
| | |
| | |
| | |
| |
| Revenue | |
| 8,791 | | |
| 7,938 | | |
| 8,547 | |
| Cost of Revenues | |
| (5,509 | ) | |
| (4,988 | ) | |
| (5,371 | ) |
| Selling, General and Administrative Expenses | |
| (1,763 | ) | |
| (1,441 | ) | |
| (1,452 | ) |
| | |
| | | |
| | | |
| | |
| EBITDA | |
| 1,519 | | |
| 1,509 | | |
| 1,724 | |
| | |
| | | |
| | | |
| | |
| Depreciation and Amortisation expense | |
| (1,217 | ) | |
| (956 | ) | |
| (1,118 | ) |
| Net Finance Expenses | |
| (307 | ) | |
| (362 | ) | |
| (471 | ) |
| Other Income (including exchange gain/loss) | |
| 57 | | |
| 29 | | |
| 14 | |
| | |
| | | |
| | | |
| | |
| Profit before tax | |
| 52 | | |
| 220 | | |
| 149 | |
| Current Tax | |
| (201 | ) | |
| (167 | ) | |
| (147 | ) |
| Deferred Tax | |
| 164 | | |
| 59 | | |
| 93 | |
| Profit for the period | |
| 15 | | |
| 112 | | |
| 95 | |
| | |
| | | |
| | | |
| | |
| Profit attributable to: | |
| | | |
| | | |
| | |
| Reconciliation with Non-GAAP measure | |
| | | |
| | | |
| | |
| Profit for the period | |
| 15 | | |
| 112 | | |
| 95 | |
| Add: | |
| | | |
| | | |
| | |
| Depreciation and Amortisation expense | |
| 1,217 | | |
| 956 | | |
| 1,118 | |
| Net Finance Expenses | |
| 307 | | |
| 362 | | |
| 471 | |
| Current Tax | |
| 201 | | |
| 167 | | |
| 147 | |
| Less: | |
| | | |
| | | |
| | |
| Deferred Tax | |
| (164 | ) | |
| (59 | ) | |
| (93 | ) |
| Other Income (including exchange
gain/loss) | |
| (57 | ) | |
| (29 | ) | |
| (14 | ) |
| EBITDA | |
| 1,519 | | |
| 1,509 | | |
| 1,724 | |
About
Sify Technologies
A
Fortune India 500 company, Sify Technologies is India’s most comprehensive ICT service & solution provider. With Cloud at the
core of our solutions portfolio, Sify is focused 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 state-of-the-art Data Centers, the largest MPLS network, partnership with global technology majors, and deep
expertise in business transformation solutions modelled on the cloud, make it the first choice of start-ups, SMEs 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 a presence across North
America, the United Kingdom and Singapore.
Sify, Sify Technologies,
Sify Infinit Spaces and Sify Digital Services are registered trademarks of Sify Technologies Limited.
Non-IFRS
Measures
This
press release contains a financial measure not prepared in accordance with IFRS. In particular, EBITDA is referred to as “non-IFRS”
measure. The non-IFRS financial measure we use may be calculated differently from, and therefore may not be comparable to, similarly
titled measures used by other companies - refer to the reconciliation provided in the table labelled Financial Highlights for more information.
In addition, these non-IFRS measures should not be considered in isolation as a substitute for, or as superior to, financial measures
calculated in accordance with IFRS, and our financial results calculated in accordance with IFRS and reconciliation to those financial
statements should be carefully evaluated.
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, 2023, 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
Praveen Krishna
Investor Relations & Public Relations
+91 44 22540777 (ext.2055)
praveen.krishna@sifycorp.com |
Grayling Investor Relations
Lucia Domville
+1-646-824-2856
Lucia.Domville@grayling.com
|
20:20 Media
Nikhila Kesavan
+91 9840124036
nikhila.kesavan@2020msl.com
|
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