Sify Technologies Limited (NASDAQ: SIFY), headquarted in Chennai,
India, a leader in Managed Enterprise, Network, IT and Software
services in India with global delivery capabilities, today
announced its consolidated results under International Financial
Reporting Standards (IFRS) for the fiscal year 2016-17.
PERFORMANCE HIGHLIGHTS:
- Revenue for the year ended March 31, 2017 was INR 18432
million, an increase of 23% over last year.
- EBITDA for the year was INR 2570 million, an increase of 5%
over last year.
- Net Profit for the year was INR 642 million, an increase of 47%
over last year.
- CAPEX during the year was INR 1669 million.
- Cash balance at the end of the year was INR 1884 million.
Mr. Raju Vegesna, Chairman, said, "We have maintained our record
of growth for the fifth year. We continue to see a general
trajectory of Enterprise clients moving towards a single-window
service provider for execution of their critical IT transformation
projects. Through our consistent delivery and demonstrated value,
we now occupy a crucial position as a strategic partner in our
client's transformational journeys.
To date, our investments in global markets have been cautious,
yet promising. I am seeing a growing trend of clients moving away
from large incumbent service providers and entrusting projects to a
growing number of nimble, proactive service providers. Our suite of
managed services and our offshore delivery model should benefit
from such changes."
Mr. Kamal Nath, CEO, said, "We continue to see healthy growth in
Order book and revenue, resulting from the investments we have made
in both the size and expertise of our sales team. Over the past
year, we have booked new orders that represent an Annual Contract
Value in excess of INR 10000 Million.
A higher number of IT transformation projects have contributed
to the revenue this year. There have also been deeper engagements
with existing clients, in which we were better able to leverage
multiple Sify services. As a result, we have been able to reduce
our dependence on our traditional telecom services and
significantly grow the contribution from IT services. The
increased mindshare that Sify enjoys from Enterprise customers was
recently recognized when Sify was included on the list of India's
"Superbrands", after an absence of 10 years."
Mr. M P Vijay Kumar, CFO, said, "Last year, in a continuing
practice of investing ahead of the curve, we enhanced our Telecom
and Data network capacity by 4 times. This reflects our confidence
in the underlying market growth, although it has some pressure on
margins in the short term due to increased bandwidth cost for
capacity creation. Nevertheless, we are pleased that we have been
able to maintain five years of positive Net Profit.
Another significant investment has been in people and process to
support the Application side of the business. In doing so, we seek
to carry forward the momentum built in leveraging on the Digital
India projects of the Government of India.
In our recent interaction with Financial Institutions and
Investors, the investment criteria, fiscal discipline and current
business model were viewed positively. We intend to maintain the
discipline as we continue to scale up our business.
The Board has recommended a dividend of 12%.
Cash balance at the end of the year was INR 1884 million."
Financial Highlights
Unaudited Consolidated income
statement as per IFRS
(In INR millions)
Quarter ended
Quarter ended
Year ended
Year ended
Description
March
March
March
March
2017
2016
2017
"2016
(Audited)" Revenue
5,235
4,036
18,432
15,035 Cost of Revenues
(3,409)
(2,462)
(11,870)
(9,104) Selling, General and Administrative Expenses
(1,213)
(979)
(3,992)
(3,480) EBITDA
613
595
2,570
2,451
Depreciation and Amortisation expense
(445)
(454)
(1,759)
(1,598) Net Finance Expenses
(41)
(111)
(314)
(520) Other Income
59
76
146
105 Profit before
tax
186
106
643
438 Income
tax expense
(1)
-
(1)
- Profit for the period
185
106
642
438 Reconciliation with Non-GAAP measure
Profit for the period
185
106
642
438
Add: Depreciation and Amortisation expense
445
454
1,759
1,598 Net Finance
Expenses
41
111
314
520 Tax
expense
1
-
1
- Less: Other Income
(59)
(76)
(146)
(105) EBITDA
613
595
2,570
2,451
Note: Figures for the year ended March 31, 2016 are audited
Business Highlights
Telecom:
- Revenue from Data Services for the year grew by 15% over last
year.
- A total number of 950 clients were added during the year.
- During the year, Sify expanded its reach by adding 246 new
sites.
- The rollout of the next generation data network in Mumbai is
now complete. The network was rolled out using the next generation
DWDM equipment, providing customers with a highly resilient network
to support Data Center-to-Data Center and Cloud traffic.
- Sify launched a unique Internet Exchange in partnership with
global pioneer AMS-IX. This multi-location IX fabric will provide
cloud and content players, as well as India service providers, a
neutral interconnection platform for IP and private
traffic.
- This year saw Sify establish dominance in the nascent Payments
bank industry in India.
- Sify also launched its Enterprise grade Managed WiFi solution,
offering New Age Connected Solutions to Enterprises going
Digital.
- Major wins this quarter included a Public-Sector bank in the
South and another Payments bank in the North.
- Multiple customers contracted for Managed Wireless LAN
services, including a large global manufacturing company and a
Public-Sector bank.
- SMACnet was chosen as the Most Innovative Offering of the year
by a leading industry media.
Data Center Services:
- Revenue from Data Center services grew by 29% over last
year.
- Sify added 36 new clients for DC Services across various
industries.
- Sify commissioned a primary Data Center for a Public sector
Insurance company along with near DR and far DC to be housed in
Sify's data centers.
- Sify's Data Centers now host network POPs for several Global
Content players. This has led to significant orders for Peering
from Indian telecom operators and ISPs.
- A National level Private Insurance company's Data Center was
successfully migrated to Sify's Data Center.
- Sify was awarded the CIO choice award 2016 for integrated data
center solutions and data center transformation services.
Cloud and Managed Services:
- Revenue from Cloud and Managed Services remained flat versus
the prior year.
- One of the world leaders in medical devices and software for
Oncology signed up to set up their first facility in India on the
Private Cloud. This contract includes Software, Infrastructure and
Connectivity.
- A leader in creating and operating next generation tech centric
financial exchanges contracted for multiple Cloud managed and
security services, including the newly launched GoInfinit
Acceleration services
- One of the largest luxury real estate players will migrate
their entire database to our Cloud environment. This contract also
included connectivity among different ongoing projects.
- A three-wheeler manufacturer signed up for a similar Cloud
setup to optimize and leverage their existing investments.
- 18 new clients were added in the last quarter.
- 9 new partnerships were signed during the year.
Applications Integration Services:
- Applications Integration services grew by 100% over the
previous year.
- The Talent Management line of business showed robust growth
with over 10 Million assessments conducted over the past year;
largest among them was the nation-wide recruitment examination for
the Govt of India, for which 6.5 million candidates
registered.
- A total of 16 new clients signed up for Forum, Talent
Management and e-Learning services.
- One of our major forward-supply-chain customers have extended
their contract by three years.
- Sify signed 12 new clients for the SAP business and 6 new
clients for Microsoft Azure business.
- Sify also acquired the first SAP Business Warehouse on Cloud
Client for the subsidiary of a major IT player.
- Key wins include an engineering and construction arm of one of
the largest Government employers and a Public Sector Bank that
contracted the business to upgrade and consolidate their Database
using a combination of Open Source and old SQL versions.
- Sify was accorded the Hosting Partner of the year award for
2016-17 by Microsoft.
Transformation Integration Services:
- Revenue for Transformation Integration services has grown 55%
over last year.
- Sify added 62 new clients across Data Centre IT, Network
Integration, Security and Collaboration Services.
- A large Public Sector Insurance Company has contracted with
Sify to deploy and provide Infra Integration services for DC
Network, IT Infra Compute and Storage, and Security services.
- Another large Public Sector Insurance company and Public Sector
Bank has contracted with Sify to refresh WAN Network Infrastructure
across India.
- A Private Insurance Company has contracted with 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 DC and DR.
- A large Public Sector Bank has contracted with Sify to
establish a Data Center and Network Infrastructure across all their
locations.
- Sify won a large contract from a Public-Sector Oil and Gas
company to establish a Data Center infrastructure.
- Sify 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.
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.
A photo accompanying this release is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=42331
For further information, please contact:
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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