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 announced its consolidated
results under International Financial Reporting Standards (IFRS)
for the third quarter of fiscal year 2016-17.
PERFORMANCE HIGHLIGHTS: • Revenue for the
quarter was INR 4635 million, an increase of 20% over the same
quarter last year. • EBITDA for the quarter was INR 701 million, an
increase of 15% over the same quarter last year. • Net Profit for
the quarter was INR 176 million, an increase of over 54%, over the
same quarter last year. • CAPEX during the quarter was INR 510.87
million. • Cash balance at the end of the quarter was INR 2055.40
million. Mr. Raju Vegesna, Chairman, said, "With the
Government taking the lead on automation, several projects are now
being fast tracked. As Sify is among the earliest evangelists of
Digital Transformation, we are being called upon either in
operational or consultative roles. This is also marking our
movement up the value chain for knowledge based services."
Mr. Kamal Nath, CEO, said, "In Q3, we have been able to continue
the positive momentum from previous quarters, with healthy Order
book, Revenue and profitability. Our experience over the years and
track record in successful delivery of integrated ICT projects
leading to foundation of Digital Transformation are being
referenced by other clients who are in similar decision zones. Our
partnership portfolio is also being augmented with new-age
Technology partners to strengthen our vertical solutions and
offerings."
Mr. M P Vijay Kumar, CFO, said, "The operating performance has
improved quarter on quarter, enabling us to make significant
investment in capacity building for the future, while still
improving our bottom-line.
We have tightened our investment criteria, with the majority of
our new infrastructure investments clearly focused on the
convergent opportunities in Data Center and Cloud Enablement, which
we believe will be at the center of IT growth in India in the
coming years.
In the light of the recent communication from NASDAQ, the
company is evaluating options and is confident that in due course,
the market price will reflect both the present intrinsic value and
growth potential of the company.
Cash balance at the end of the quarter was INR 2055.40 million."
Financial Highlights:
Unaudited Consolidated
income statement as per IFRS
(In
INR millions)
Quarter ended
Quarter ended
Quarter ended
Year ended
Description
December
December
September
March
2016
2015
2016
2016
(Audited) Revenue
4,635
3,877
4,392
15,035 Cost
of Revenues
(3,007)
(2,530)
(2,787)
(9,104) Selling, General and Administrative Expenses
(927)
(737)
(970)
(3,480)
EBITDA
701
610
635
2,451 Depreciation and
Amortisation expense
(440)
(399)
(432)
(1,598) Net Finance Expenses
(110)
(104)
(82)
(520) Other Income
25
7
36
105 Profit for the period
176
114
157
438 Reconciliation with
Non-GAAP measure Profit for the period
176
114
157
438 Add: Depreciation and Amortisation
expense
440
399
432
1,598 Net
Finance Expenses
110
104
82
520 Less: Other Income
(25)
(7)
(36)
(105)
EBITDA
701
610
635
2,451 Business Highlights:
Telecom Services: • Data and Network
Managed Services revenue grew by 11% over the same quarter last
year. Revenue for the quarter was negatively impacted by a one-off
adjustment pertaining to the impact of the cyclone in Chennai. •
The business added 265 new customers in the quarter. • During the
quarter, Sify expanded operations to the neighbouring SAARC
countries and recorded its first win in the region. • Key wins
include a large South based Public Sector Bank and a retail fashion
chain. • During the quarter, Sify launched a Managed Wifi offering
that enables large distributed enterprises to deploy a secure,
scalable wireless LAN solution across their network. Key wins in
this segment include a deployment for a large offshore center for a
US multinational and a manufacturing company. Data
Center Services: • DC services business continued its
growth trend with 40% revenue growth over same quarter last year. •
The business added 12 new customers in this quarter. • Among those
who signed up were an online search major, a private insurance
major, one of India's largest private banks and a heavy engineering
group. • Sify continued to invest in DC capacity expansion across
all strategic regions - Mumbai, Delhi and Bangalore.
Cloud and Managed Services: • CMS services
business recorded -6% revenue growth over same quarter last year. •
Sify added 14 new customers in this quarter. • Sify won some marque
projects and customers, including a health insurance major, a
leading infrastructure finance company, one of India's leading
broking houses, a State Government's Research and Training division
and another State Government development body. • Sify launched new
Enterprise-centric services around the AWS stack, with Direct
Connect capabilities providing near zero latency for Sify-hosted
customers. • For the Web Acceleration and Security portfolio, Sify
added 4 clients – One large global fast food delivery chain for
accelerating and securing their online web order management system
as well one of India's largest mobile-wallet companies. • The
business also concluded 2 large contracts from Government of India
(GOI) to accelerate their online engagement media.
Applications Integration Services: • AIS revenue
grew by 64% over the same quarter last year. • Sify has signed up
12 new customers for the quarter. • A pan-India consumer healthcare
company has signed up for dealer management services • 4 reputed
customers including a large PSU bank have signed up for the
Microsoft Azure business. • The business has signed up 3 new
customers for Talent Management. In all, the business has enabled
over half a million online examinations just this quarter • 7
prestigious brands have signed up with Sify for Managed SAP
services. • Sify eLearning won the prestigious Brandon Hall Silver
Award for excellence in eLearning. This is Sify's 12th Brandon Hall
Award. Technology Integration Services: •
Revenue for TIS has grown 45% over same quarter last year. • Sify
added 22 new clients across Data Centre IT, Network Integration,
Security and Collaboration Services. • A Large Public Sector
Insurance Company has contracted with Sify for Data Centre
Infrastructure refresh to deploy and provide Infra Integration
services for DC Network, IT Infra Compute and Storage and Security
services. • Another large Public Sector Insurance company has
contracted with Sify to refresh WAN Network Infrastructure across
India. • During the quarter, Sify successfully handed over projects
for Data Center transformation to two Private Insurance companies,
deployed IT Infra and Network, Security and Collaboration services
for a State Govt Department, a WAN roll out across Public sector
insurance company and Security roll out for a public sector oil
company. The handover of these projects is a reflection of Sify's
commitment to deliver large complex transformational projects on
time. 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 1400 cities and
towns in India. This telecom network today connects 43 Data Centers
across India including Sify's 6 Tier 3 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=42098
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
Sify Technologies (NASDAQ:SIFY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sify Technologies (NASDAQ:SIFY)
Historical Stock Chart
From Sep 2023 to Sep 2024