Sify reports Revenues of INR 5807 Million for Second Quarter of FY 2019-20
October 18 2019 - 7:36AM
PERFORMANCE HIGHLIGHTS:
- Revenue for the quarter was
INR 5807 Million, an increase of 5% over the same quarter last
year.
- EBITDA for the quarter was INR
1061 Million, an increase of 38% over the same quarter last
year. Considering IFRS16 leases adoption from
April 1, 2019 the increase is 24% on comparable
basis.
- Profit before tax for the
quarter was INR 280 Million, an increase of 11% over the same
quarter last year.
- Profit after tax for the
quarter was INR 191 Million, a decrease of 25% over the same
quarter last year due to tax expense during the current
quarter.
- CAPEX during the quarter was
INR 983 Million.
- Cash balance at the end of the
quarter was INR 1375 Million.
MANAGEMENT
COMMENTARY
Mr. Raju Vegesna, Chairman, said, “With the rapid
adoption of digital technology across India, Global Enterprises and
domestic players now see a market of 1.3 billion people who have to
be quickly transitioned to the reality of a digital economy. In
their pursuit to do so, they will draw upon the strength of local
IT enablers who have the capability and local knowledge to
execute.
"That is the opportunity in front of Sify
today.”
Mr. Kamal Nath, CEO, said, "We
continue to see increasing Cloud adoption in Enterprises as well as
Government clients. Our investments, skills and partnerships are
attracting clients who are renewing their erstwhile on-prem
outsourcing, people heavy contracts and looking for hybrid or
multi-cloud flavoured models. We are also able to bring in benefits
to clients with our hyperscale network services which enables cloud
adoption. The true value of Sify’s ICT services is being unleashed
in Cloud transformation projects.”
Mr. M P Vijay Kumar, CFO, said,
“With the focus on digital transformation, Enterprises are actively
engaging for multiple ICT services for the operational benefits of
our comprehensive set of services. We are seeing our managed
services on top of the DC and Cloud as having the most traction
among them. While we expand our capacity, both data centers and
network infrastructure, we continue to exercise prudence in our
capital investments.
"This financial year, the increase in
depreciation and interest is partly due to IFRS 16 becoming
applicable for leases and the tax expense is due to company being
subject to income tax as the benefit of past losses has been
utilized in full until last year.
"Our cash balance at the end of the quarter
stands at INR 1375 Million.”
|
FINANCIAL
HIGHLIGHTS |
Unaudited
Consolidated Income Statement as per IFRS |
|
|
(In INR
millions) |
|
Quarter ended |
Quarter ended |
Quarter ended |
Description |
September |
September |
June |
|
2019 |
2018 |
2019 |
|
|
|
|
|
|
|
|
Revenue |
5,807 |
5,509 |
5,518 |
Cost of
Revenues |
(3,650) |
(3,470) |
(3,550) |
Selling, General and
Administrative Expenses |
(1,096) |
(1,268) |
(1,094) |
|
|
|
|
EBITDA |
1,061 |
771 |
874 |
|
|
|
|
Depreciation and
Amortisation expense |
(527) |
(384) |
(506) |
Net Finance
Expenses |
(261) |
(175) |
(64) |
Other Income
(including exchange gain) |
15 |
67 |
28 |
Other Expenses
(including exchange loss) |
(8) |
(26) |
(12) |
|
|
|
|
Profit before
tax |
280 |
253 |
320 |
Income tax
expense |
(89) |
- |
(104) |
Profit for the
period |
191 |
253 |
216 |
|
|
|
|
Profit attributable
to: |
|
|
|
Reconciliation with
Non-GAAP measure |
|
|
|
Profit for the
period |
191 |
253 |
216 |
Add: |
|
|
|
Depreciation and
Amortisation expense |
527 |
384 |
506 |
Net Finance
Expenses |
261 |
175 |
64 |
Other Expenses
(including exchange loss) |
8 |
26 |
12 |
Income tax
expense |
89 |
- |
104 |
Less: |
|
|
|
Other Income
(including exchange gain) |
(15) |
(67) |
(28) |
|
|
|
|
EBITDA |
1,061 |
771 |
874 |
|
|
|
|
BUSINESS HIGHLIGHTS
- Revenue from Data Center centric IT Services fell by 4% over
the same quarter last year.
- Segment-wise, revenue from Data Center Services and Cloud and
Managed Services grew by 18% and 30% respectively, while those from
Technology Integration Services and Application Integration
Services fell by 32% and 3% respectively.
- Revenue from Telecom centric services grew by 16% over the same
quarter last year.
- Segment-wise, revenue from Data and Managed Services grew 15%
while revenue from the Voice business grew by 17%.
GROWTH DRIVERS
The primary growth driver in the market
continues to be cloud adoption, led by digital initiatives and
transformation. This trend is triggering movement of workloads from
on-premise Data Centers to hyperscale Public Cloud and hosted
Private Cloud in varied degrees, based on the digital objectives of
the Enterprises. This results in transformation of the traditional
network architecture, and transformation at the edge which connects
the end user. The need for digital services like analytics, data
lakes, IoT, etc are shifting the balance to adoption of hyperscale
Public Cloud vs Private Cloud. Collectively, these trends are
generating opportunities for full scale Cloud, DC and Network
service providers with digital services skills. KEY
WINS
Highlights of our major wins in the quarter include:
- Customers choosing Sify for migration of their on-premise data
center to multi-cloud platforms like Cloudinfinit, AWS and Azure.
They also entrusted Sify with management and security.
- Customers choosing Sify as their DC Hosting partner as they
embrace hybrid cloud strategy.
- Customers choosing Sify as their Digital services partner.
- Customers choosing Sify as their Network Transformation and
Management partner as they migrate to Cloud-ready
network.
A consolidated summary of the key highlights during the quarter
is noted below:
Data
Center Centric IT Services highlights include:
- 11 customers contracted to have their workload migrated from
their on-premise DC to multiple clouds. These cover key verticals
such as Banking, ITeS, Manufacturing, Agri-sciences and
Logistics.
- 4 customers contracted with Sify for greenfield Cloud
implementation from verticals such as a PSU, Logistics, Media and
IT.
- 18 new customers contracted for services like DRaaS, PaaS and
IaaS on public Cloud and Cloudinfinit platform.
- 4 customers, including one of India’s largest private banks,
moved their IT infrastructure from competitor DC to Sify DC, while
3 customers migrated from their on-premise DC to Sify DC. These
were across verticals such as Banking and Financial services, Heavy
Industry, Manufacturing and a Commodities exchange platform.
- One of India’s largest MNCs contracted Sify to modernize their
Data center.
- One of India’s largest private banks contracted for the design,
supply and deployment of their on-premise DC.
- 18 customers contracted for Cloud managed services.
- A public sector bank contracted for a multi-year deployment and
management of their Security Operations center.
- 24 customers contracted for a complete technology refresh of
their security services.
- Telecom Centric Services added 144 new
customers in the quarter.
- A global technology corporation contracted with Sify for
interconnects to the Cloud.
- A public sector Insurance company contracted for a complete
network transformation that includes a secondary network, SD-WAN
and Managed services.
- A public sector industry major, a private bank and a financial
company contracted for managed and secure SD-WAN services.
- Another public sector insurance company signed up for
integrated network transformation project.
- 20 customers contracted for collaboration services from across
verticals like technology, insurance, banking, manufacturing and
the government.
- Sify launched Carrier Ethernet during the quarter.
About Sify TechnologiesSify
Technologies is the India’s most comprehensive largest ICT service
& solution provider. With Cloud at the core of our solutions
portfolio, Sify is focussed on the changing ICT requirements of the
emerging Digital economy and the resultant demands from large, mid
and small-sized businesses.
Sify’s infrastructure comprising the largest
MPLS network, top-of-the-line DCs, partnership with global
technology majors, vast expertise in business transformation
solutions modelled on the cloud make it the first choice of
start-ups, incoming enterprises and even large Enterprises on the
verge of a revamp,
More than 10000 businesses across multiple
verticals have taken advantage of our unassailable trinity of Data
Centers, Networking and Security services and conduct their
business seamlessly from more than 1600 cities in India.
Internationally, Sify has presence across North America, the United
Kingdom and Singapore.
Sify, www.sify.com, Sify Technologies and
www.sifytechnologies.com are registered trademarks of Sify
Technologies Limited
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, 2019, 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 |
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