Sify reports revenues of INR 4392 million for second quarter of FY 2016-17
October 19 2016 - 8:08AM
Sify Technologies Limited (NASDAQ: SIFY),
headquartered at 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 second
quarter of fiscal year 2016-17.
PERFORMANCE HIGHLIGHTS:
- Revenue for the quarter was INR 4392 million, an increase of
18% over the same quarter last year.
- EBITDA for the quarter was INR 634 million, a reduction of 4%
from the same quarter last year.
- Net Profit for the quarter was INR 157 million, an increase of
18% over the same quarter last year.
- CAPEX during the quarter was INR 474million.
- Cash balance at the end of the quarter was INR 1842
million.
Mr. Raju Vegesna, Chairman, said, "The reality of Digital
Transformation is taking hold with multiple clients limiting
investment in legacy infrastructure and opting for new age
solutions. The government's Digital India agenda is beginning to
alter the perception of how business is done in India. As one ofthe
earliest proponents of this transformation, we have had the
opportunity to deliverseveral of these digital transformation
projects, thus building a track recordfor large MNCs to entrust
their IT roadmap to us."
Mr. Kamal Nath, CEO, said, "With our Q2 performance, we have
been able to maintain our QoQ growth for the successive 14quarters
in Revenue, New Order Book and Profitability. Sify, as a
comprehensive ICT Services Provider and with a strong focus in Data
Centre and Network Transformation projects is increasingly becoming
the partner of choice for Enterprises embarking on their Digital
Transformation journey. This encourages us to further augment our
infrastructure and services portfolio and our partnership landscape
to be more relevant in our client's Digital Transformation journey
going forward."
Mr. M P Vijay Kumar, CFO, said, "We have maintained a consistent
growth in revenue amidst a cautious spending period. We have
incurred operating costs specific to expansion this quarter which
has marginally increased our SG&A, and thus weighed down on the
EBITDA. We are insistent on working with clients with clear
roadmaps and predictable outcomes. Our focus is on right-sizing a
project, financial discipline and timely completion. Investment in
infrastructure will continue to be dictated by commitment from
clients and with a clear view to optimising asset utilisation. Cash
balance at the end of the quarter was INR 1842million." Financial
Highlights Unaudited Consolidated income statement as per IFRS (In
INR millions)
Quarter ended Quarter ended Quarter ended
Description
September September
June
2016
2015
2016 Revenue
4,392
3,715
4,170 Cost of Revenues
(2,799)
(2,166)
(2,666) Selling, General and Administrative Expenses (959)
(887)
(882) EBITDA
634
662
622 Depreciation and Amortisation expense
(432) (369)
(441) Net Finance Expenses
(82)
(172)
(81) Other Income
37
12
25 Profit for the period
157
133
125 Reconciliation with Non-GAAP measure Profit for the period
157
133
125 Add: Depreciation and
Amortisation expense 432
369
441 Net Finance Expenses
82
172
81 Less: Other Income
(37)
(12)
(25) EBITDA
634
662
622 Business Highlights
Telecom
- Data business revenue grew by over 17% over the same quarter
last year.
- The business added more than 240 new clients this quarter.
- Key wins included two banks in South India, network expansion
for a PSU Insurance company and a large enterprise network build
for a Government Institute.
- Our Network transformation approach enabled Sify to achieve a
winfrom a leading Indian conglomerate in the power infrastructure
sectors.
- During the quarter Sify also completed implementation of a
project to upgrade the city wide metro networks in Mumbai to
provide webscale capable Data Center and Cloud Interconnection
capabilities. This transformational Software Defined Network will
be the foundation of the next generation network services to be
launched soon.
- Sify also launched its Managed Enterprise Mobility solution
based on Wireless LAN technologies as part of its SMACnet strategy.
The launch is towards building a portfolio of solutions that
enterprises can leverage to build their digital transformation
strategy.
Data Center Services
- Data Center business revenue grew by 34% over same quarter last
year.
- The business signed up 18 new Data Center clients this
quarter.
- The business migrated one of India's leading private insurance
companies to its DC in Noida.
- In a first among their peers, a leading Japanese automobile
component manufacturer company outsourced their entire hosting
requirement to Sify.
- One of the world's leaders in online search and aggregation
chose our Noida facilityto host one of their interconnection
nodes.
- A Value Added mobility services company also signed up for
their Data Center requirement.
Cloud and Managed Services
- Revenue from the CMS business fell by 9% over the same quarter
last year.
- The business added 9 new clients during the quarter. The
highlight this quarter was a transformation Infra and Cloud project
implemented on behalf of a private IT major for a State Government
in under a week.
- Another existing client migrated their non-SAP workloads to
Sify Cloud. This is in addition to their SAP HANA migrated
earlier.India's fastest growing hotel room aggregator picked Sify
cloud to host their customer-facing online web portal and also CDN
services.
- Some of the significant wins during this quarter include two
online fashion entrants, a cement major, a scheduled bank and a
media services company.
Applications Integration Services
- The business grew revenue by 85 % over same quarter last
year.
- The business added 10 new customers this quarter.
- In a first, Sify completely overhauled the recruitment process
for India's largest government run joint recruitment agency by
taking the entire test process online. This is a huge milestone in
realising the Prime Minister's Digital India vision.
- One of India's largest fixed telephony and broadband services
providers digitized their hiring process using Sify Talent
Management Services.
- Sify successfully conducted an on-line examination drive for
one of the Navaratna, Fortune 500 energy companies.
- Sify won a distributor management system order from a
prestigious Mini Ratna Public Sector Enterprise.
- Sify has won a multiyear Talent Management contract from one of
the leading banks in Malaysia.
Technology Integration Services
- Revenue of this business has grown 65% over same quarter last
year.
- The business added 12 new clients across Data Center IT,
Network Integration, Security and Collaboration Services.
- A Private Insurance Company has contracted Sify for a Data
Center Transformation Project to design, deploy, host and migrate
existing Data Center services to new platform along with managed
services for entire Data Center and DR.
- A large Public sector Bank has contracted with Sify to
establish a Data Center infra and Network Infrastructure across all
their locations.
- The business also won a large contract from a Public sector Oil
and Gas company to establish a Data Center infrastructure.
- During the quarter, Sify successfullycompleted a significant
Data Center transformation project to a State Govt electricity
company, large scale Data Center and Migration services to a
Private Insurance company and a Security projectfor a Private
Insurance company. These projects reflect Sify's commitment to
deliver large complex transformational projects.
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 Center
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.
For further information, please contact:
A photo accompanying this release is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=41698
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
Nikhila Kesavan
+91 9840124036
nikhila.kesavan@2020msl.com
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