Sify Technologies Limited (NASDAQ:SIFY), headquartered in Chennai,
India, a leader in Managed Enterprise, Network, IT and Applications
services in India with global delivery capabilities, today
announcedits consolidated results under International Financial
Reporting Standards (IFRS) for the first quarter of fiscal year
2016-17.
PERFORMANCE HIGHLIGHTS:
• Revenue for the quarter was INR 4170 million, an increase of
22% over the same quarter last year. • EBITDA for the quarter was
INR 622 million, an increase of approximately 7% over the same
quarter last year. • Net Profit for the quarter was INR 125
million, an increase of 47% over the same quarter last year. •
CAPEX during the quarter was INR 163.37 million. • Cash balance at
the end of the quarter was INR 2330 million.
Mr. Raju Vegesna, Chairman, said, "The market
is continuing to see the merits of the complete information
technology eco-system that Sify offers to both the large and small
Enterprises, including MNCs. Additionally, the Government's agenda
of Digital India is creating new opportunities to apply our
comprehensive solutions portfolio. As these projects are
successfully commissioned, they will serve to strengthen our
credibility to provide similar solutions to larger MNCs.
We are also expanding our infrastructure footprint in line with
commitments to some of our key MNC clients. These will serve as a
strong platform to support Sify'scontinuing growth." Mr.
Kamal Nath, CEO, said, "For successive quarters, we have
continuously grown our revenue, order book and profitability. We
are happy to share that the diversity of our client base in
multiple verticals is improving each quarter.
We have seen healthy mix of business from run rate deals and
strategic large deals from Indian Enterprise, MNCs, Government and
Public Sector Units." Mr. M P Vijay Kumar, CFO,
said, "Our disciplined financial choices over the years has enabled
us in keeping our projects financially healthy. We continue our
focus on cost efficiency in execution of projects and in our
operations, while simultaneously investing in people and tools for
future growth.
Our infrastructure assets continue to appeal to global MNCs who
demand stringent standards. This has helped us increase asset
utilization, and we plan to make future investment in line with
commitment from clients.
Cash balance at the end of the quarter was INR 2330 million."
Financial Highlights Unaudited Consolidated income
statement as per IFRS (In INR millions)
Quarter ended
Quarter ended
Year ended
Description
June
June
March
2016
2015
2016 (Audited)
Revenue
4,170
3,407
15,035 Cost of Revenues
(2,666)
(2,003)
(9,104) Selling, General and Administrative Expenses
(882)
(821)
(3,480) EBITDA
622
583
2,451 Depreciation and Amortisation expense
(441)
(376)
(1,598) Net
Finance Expenses
(81)
(132)
(520) Other Income
25
10
105 Profit for the period
125
85
438 Reconciliation with Non-GAAP measure
Profit for the period
125
85
438 Add: Depreciation and Amortisation expense
441
376
1,598 Net Finance Expenses
81
132
520 Less: Other Income
(25)
(10)
(105) EBITDA
622
583
2,451 Business
Highlights
Telecom
• Data business grew by over 15% over the same quarter last
year. • The Telecom business has signed up more than 200 new
clients during the quarter. • Customer acquisition for the network
managed services has accelerated, with over 100% growth over the
last 12 months. • Sify'ssigned contracts for WAN transformation
services with two eCommerce start-ups who were dealing with
problems of scale and hyper growth. • During the quarter, Sify also
completed implementation of Phase 1 of itsNetwork upgrade, tripling
both domestic and global capacity. This capacity enhancement
specifically targets the new generation of internet traffic
generated by a combination of information from the Social, Mobile,
Analytics and Cloud eco-system. • During the quarter, Sify also
commissioned more than 5000 new sites for customers including
successful project handovers for two WAN Transformation projects
won earlier. The handover of these projects is a reflection of
Sify's commitment to deliver large complex transformational
projects. • Some of the clients added this quarter included the
Central Governments' digital enablement platform, the global
services of one of India's largest Public sector Banks, a Public
Sector Insurance major, another Public Sector bank, a new-age
Payment Bank, an online share trading portal, and a leading
consumer finance provider.
Data Center Services
• Data Center business revenue grew by 17% over same quarter
last year. • 12 new customer logos have been added during this
quarter. • The business has been awarded with contracts from both
Public sector and Enterprise customers. • Prominent among them was
one to host the DC and DR for the State run Agricultural Insurance
Institute. • A leading Private Life Insurance Company has partnered
with Sify for Data Center migration and hosting. • Sify also signed
a contract with National Internet Exchange (NIXI)to set up a
newPoP.
Cloud and Managed Services
• Revenue from the CMS business grew 25% over the same quarter
last year. • The business has signed up 7 new clients for this
quarter. • Customers from eCommerce, Insurance, Banking,
Manufacturing, Healthcare, Logistics, Real Estate & Government
verticals have signed up with Sify for Cloud and Managed Services.
• The business has signed up a leading Real Estate Company for
transformational IT and to build future ready IT infrastructure. •
The business has enabled a leading Insurance company to launch new
Insurance Products and create an online Sales channel through
Sify's Cloud Services. • Sify also signed up a leading FMCG company
to host their new Product campaigns & promotions. • Government
of India's Nodal ICT Agency has contracted with Sify for
acceleration services as a part of their transformational
portfolio. Another arm of the Government of India has contracted
with Sify to accelerate end-user services for the Digital India
Project. • Other clients signed this quarter were a mobile services
provider, a heavy engineering major, a prominent player in
transactional data analytics and a private power distribution
player. Applications Integration Services
• The business grew by 30% over same quarter last year. • The
business signed up 16 new clients this quarter. • Sify partnered
with the largest Government recruitment body in India to conduct
computer-based examination for recruitment of police and
paramilitary personnel for the first time. Sify conducted the
examination smoothly for 345,000 candidates across 82 cities and
382 test centres. • One of the India's largest PSUs has signed with
Sify to migrate their messaging and collaboration services on
Microsoft Exchange platform. • Some of the other wins for
Sify'sMicrosoft line of businessinclude a Co-operative bank, a
large healthcare chain, a leading third party logistics company,
the online media services of an English daily, two major
distributors of Indian spices, and a banking financial applications
service provider. • The SAP line of business has signed up with a
major player in the Electricity transmission line business, a large
mining company, and a steel producing major.
Technology Integration Services
• Revenue of this business has grown 115% over same quarter last
year. • The business added 14 new clients across Data Center IT,
Network Integration, Security and Collaboration Services. • A large
Public sector Insurance Company has contracted with Sify to
establish a Wide Area Network across their 1000+ branches. • The
business also won a large contract from a State Government to
establish an end-to-end Data Center infrastructure, which includes
design and setup of IT, Network and Security, and Managed Services
platform. • The business also won a large Campus Network
Infrastructure project to design, implement, and manage the campus
network infrastructure for Video and Voice services for a State
High Court.
• Sify added 7 new clients in Security Services and had two
large wins in Public sector banks. Sify alsoelevated its
partnership with aleading Security Partner to Gold partnership
level.
About Sify Technologies
Sify is among the largest integrated ICT Solutions and Services
companies in India, offering end-to-end solutions with a
comprehensive range of products delivered over a common telecom
data network infrastructure reaching more than 1300 cities and
towns in India. This telecom network today connects 38 Data Centers
across India including Sify's 6 Tier III Data Centers across the
cities of Chennai, Mumbai, Delhi and Bengaluru.
A significant part of the company's revenue is derived from
Enterprise Services, comprising of Telecom services, Data Centre
services, Cloud and Managed services, Applications Integration
services and Technology Integration services. Sify also provides
services that cater to the burgeoning demands of the SMB community,
much of it on its Cloud services platform.
Sify has a unified licence to operate NLD (National Long
Distance), ILD (International Long Distance) services and ISP
services and offers VoIP backhaul for international carriers. With
the Sify Cable landing station and partnerships with submarine
cable companies globally, Sify is present in almost all the spheres
of the ICT eco system.
Sify has an expanding base of Managed Services customers, both
in India and overseas, and is India's first enterprise managed
services provider to launch a Security Operations Center (SOC) to
deliver managed security services. The software team develops
applications and offers services to improve business efficiencies
of its current and prospective client bases. Sify also offers
services in the specialized domains of eLearning, both in India and
globally. For more information about Sify, visit www.sifycorp.com
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,
2016, 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.
A photo accompanying this release is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=40889
CONTACT: Sify Technologies Limited
Mr. Praveen Krishna
Investor Relations & Public Relations
+91 44 22540777 (ext.2055)
praveen.krishna@sifycorp.com
Grayling Investor Relations
Shiwei Yin
+1-646-284-9474
Shiwei.Yin@grayling.com
20:20 Media
Ms. Divya Singh
+91 0 8552944004
divya.singh@2020msl.com
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