Sify reports revenues of INR 4555 million for first quarter of FY 2017-18
July 24 2017 - 9:56AM
Sify Technologies Limited (NASDAQ:SIFY), headquartered at Chennai,
India, a leader in Telecom and Data Center centric IT services in
India with global delivery capabilities, today announced its
consolidated results under International Financial Reporting
Standards (IFRS) for the first quarter of fiscal year 2017-18.
PERFORMANCE
HIGHLIGHTS:
- Revenue for the quarter was INR 4555
million, an increase of 9% over the same quarter last
year.
- EBITDA for the quarter was INR 699 million, an increase
of 12% over the same quarter last year.
- Net Profit for the quarter was INR 174 million, an
increase of 39% over the same quarter last year.
- CAPEX during the quarter was INR 573
million.
- Cash balance at the end of the quarter was INR 1820
million.
Mr. Raju Vegesna, Chairman,
said, “Our continuing good results are a validation of the
strategic direction we have set for ourselves. We had made clear
progress on all fronts, aided by both right solutions and
consistent execution.
The Sify 3.0 vision of an integrated ICT player
has been realized. We owe our continuing growth to the unwavering
focus of our team members in expanding our footprint in India and
strengthening our services across the world. Our involvement in
Digital India initiatives and various digital transformation
projects continues to be a key growth driver. The government’s
resolve to aggressively adopt automation is creating multiple
opportunities for our services. Successful delivery of such large
government projects will help build equity with Enterprise
customers for our projects”.
Mr. Kamal Nath, CEO, said, "We
are truly excited that our Data Center centric IT services are now
generating revenues almost on par with our Telecom business. Over
the years, we have enhanced our business and technology
capabilities, re-oriented our business insights and developed a
strong vertical-focussed sales team.
This quarter, we have seen a significant
increase in our Order Book related to IT transformation projects.
Deeper engagement with the government is helping us position
ourselves better on Government-initiated automation projects.
Going forward, we will be presenting our
business results under the following categories.
a) Telecom centric services comprising of
Managed data services on our domestic and international network and
termination of voice calls over internet protocol into our domestic
and our international partners network.b) Data Center
centric IT services comprising of Managed Colocation
services at Sify’s six Tier 3 Data Centers, multi-flavoured Cloud
services, Application-led services and Technology Integration-led
services”.
Mr. M P Vijay Kumar, CFO, said,
"There are clear indicators that the pace of IT consumption in
India is all set to ramp up. By continuously investing ahead of the
curve, we present a ready infrastructure for domestic enterprises
and global MNCs. Our asset utilisation continues to
improve, based on demand from both segments.
Our cash balance stands at INR 1820 million.
Taking note of our representations on the
minimum bid price deficiency, Nasdaq has given us an additional 180
days to regain compliance”.
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Financial
Highlights |
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Unaudited Consolidated income statement as per
IFRS |
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(In INR
millions) |
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Quarter
ended |
Quarter ended |
Year ended |
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Description |
June |
June |
March |
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2017 |
2016 |
2017 (Audited) |
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Revenue |
4,555 |
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4,170 |
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18,432 |
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Cost of Revenues |
(2,807 |
) |
(2,666 |
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(11,870 |
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Selling, General and
Administrative Expenses |
(1,049 |
) |
(882 |
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(3,991 |
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EBITDA |
699 |
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622 |
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2,571 |
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Depreciation and
Amortisation expense |
(461 |
) |
(441 |
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(1,759 |
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Net Finance
Expenses |
(92 |
) |
(81 |
) |
(315 |
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Other Income |
28 |
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25 |
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146 |
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Profit before
tax |
174 |
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125 |
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643 |
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Income tax expense |
- |
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- |
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(1 |
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Profit for the
period |
174 |
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125 |
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642 |
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Reconciliation with
Non-GAAP measure |
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Profit for the
period |
174 |
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125 |
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642 |
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Add: |
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Depreciation and
Amortisation expense |
461 |
|
441 |
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1,759 |
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Net Finance
Expenses |
92 |
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81 |
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315 |
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Income tax expense |
- |
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- |
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1 |
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Less: |
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Other
Income |
(28 |
) |
(25 |
) |
(146 |
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EBITDA |
699 |
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622 |
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2,571 |
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Business Highlights
Telecom centric
services
Comprises of Managed data services on our
domestic and international network and termination of voice call
over internet protocol into our domestic and into our international
partners network.
- Revenue from Data business grew by 9% over the same quarter
last year.
- Overall, revenue from Telecom centric services decreased by 5%
versus the same quarter last year, primarily due to a reduction in
revenue from India voice termination business.
- Sify signed up approximately 200 new clients for Telecom
centric services during the quarter.
- Sify’s data network reached a milestone, covering 1500 cities;
this is approximately a 62% presence across India.
- Sify also completely upgraded its international PoPs and
capacities in Europe and Asia to deliver the next generation of
scale and services for its global enterprise customers.
- As part of a multi-city Hyper-Scale network rollout, Sify’s
Mumbai network was upgraded to 100G level to support scalability
for Cloud and Data Center Interconnect services.
- Our recently launched Managed Wifi services is gaining
significant traction in the Banking industry with multiple Private
and Public banks signing up.
- During the quarter, Sify completed a pan-India WAN network for
a Large Public Sector Insurance company, and expanded the WAN for
another Large Public sector Bank.
Data Center centric IT
servicesComprises of Managed Colocation services at Sify’s
six Tier 3 Data Centers, multi-flavoured Cloud services,
Application-led services and Technology Integration-led
services
- Revenue from Data Center centric IT services grew by 31% over
same quarter last year.
- 98 customers were signed up for Data Center centric IT Services
in this quarter.
- Sify enhanced its Cloud services portfolio with India’s first
All-Flash storage. This is the highest performance per-Terabyte
available today in the country.
- Sify partnered with SAP to roll out a quick-implementation
solution for Enterprises migrating to the new indirect tax
legislation, the Goods and Services Tax (GST).
- Sify partnered with Enghouse to rollout
Contact-Center-as-a-Service (CcaS), migrating all existing Contact
Center customers to the new platform.
- Significant wins for Colocation services were from a leading
power transmission company and a world leader in
logistics.
- A Large Public Sector General Insurance Company contracted with
Sify for Data Center/DR Infrastructure services and to provide
Infra Integration services for DC Network, IT Infra Compute and
Storage, Virtualization and Security services.
- A large Public sector Bank signed up to virtualize its entire
DC Infrastructure and Applications.
- Sify was awarded Partner of the Year at the VMware Partnership
Leader Forum.
About Sify TechnologiesSify
Technologies Limited (NASDAQ:SIFY), is an acknowledged ICT leader
in the Telecom and Data Center centric IT services space with
global delivery capabilities. Among the very few Enterprise class
player in India, Sify, today has presence in 1500 cities in India
and in North America, United Kingdom and Singapore. More than 9000
Enterprises access Sify’s IT services that’s focused on the Data
Center and Cloud platform and connected through India’s largest
MPLS network. As a truly converged ICT solutions and services
provider, Sify is the preferred IT Services partner with a full
suite of services ranging from Telecom connectivity services to
Data Center transformation services along with Application and
Security Services delivered on the same infrastructure. Sify, Sify
Technologies and www.sifycorp.com are registered trademarks of Sify
Technologies Limited
Forward Looking StatementsThis
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, 2017, 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
Mr. Praveen Krishna
Investor Relations & Public Relations
+91 44 22540777 (ext.2055)
praveen.krishna@sifycorp.com
20:20 Media
Nikhila Kesavan
+91 9840124036
nikhila.kesavan@2020msl.com
Grayling Investor Relations
Shiwei Yin
+1-646-284-9474
Shiwei.Yin@grayling.com
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