Sify reports Revenues of INR 5228 Million for Third Quarter of FY 2017-18
January 22 2018 - 9:04AM
PERFORMANCE HIGHLIGHTS:
- Revenue for the quarter was INR 5228 Million, an
increase of 13% over the same quarter last year.
- EBITDA for the quarter was INR 702 Million,
approximately the same as the same quarter last year.
- Net Profit for the quarter was INR 285 Million, an
increase of 62% over the same quarter last year.
- CAPEX during the quarter was INR 379
Million.
- Cash balance at the end of the quarter was INR 1898
Million.
|
|
|
|
FINANCIAL HIGHLIGHT |
Unaudited Consolidated Income Statement as per
IFRS |
(In INR
millions) |
|
|
|
|
Quarter
ended |
Quarter ended |
Quarter
ended |
Description |
December |
December |
September |
|
2017 |
2016 |
2017 |
|
|
|
|
|
|
|
|
Revenue |
5,228 |
|
4,635 |
|
4,840 |
|
Cost of Revenues |
(3,469 |
) |
(3,007 |
) |
(3,066 |
) |
Selling, General and
Administrative Expenses |
(1,057 |
) |
(927 |
) |
(1,058 |
) |
|
|
|
|
EBITDA |
702 |
|
701 |
|
716 |
|
|
|
|
|
Depreciation and
Amortisation expense |
(396 |
) |
(440 |
) |
(525 |
) |
Net Finance
Expenses |
(62 |
) |
(110 |
) |
(73 |
) |
Other Income |
41 |
|
25 |
|
85 |
|
|
|
|
|
Profit before
tax |
285 |
|
176 |
|
203 |
|
Income tax
expense |
- |
|
- |
|
- |
|
Profit for the
period |
285 |
|
176 |
|
203 |
|
|
|
|
|
Reconciliation with
Non-GAAP measure |
|
|
|
|
|
|
|
Profit for the
period |
285 |
|
176 |
|
203 |
|
Add: |
|
|
|
Depreciation and
Amortisation expense |
396 |
|
440 |
|
525 |
|
Net Finance
Expenses |
62 |
|
110 |
|
73 |
|
Income tax expense |
- |
|
- |
|
- |
|
Less: |
|
|
|
Other Income |
(41 |
) |
(25 |
) |
(85 |
) |
|
|
|
|
EBITDA |
702 |
|
701 |
|
716 |
|
|
|
|
|
Mr. Raju Vegesna, Chairman,
said, “We remain encouraged by the response of Domestic and Global
Enterprises to our subscription and outcome-based services. They
are beginning to see the merits of consolidating their IT needs
with service providers like us who can extend the full range of ICT
solutions. Public policy and measures undertaken by the Indian
government thus far are positive for large scale Digital
Transformation projects, both from private Enterprise and the
Public Sector.”
Mr. Kamal Nath, CEO, said, “Our
growth is being driven by our continuous enhancement in Data Centre
centric IT services which for the first time has gained more wallet
share than our Telecom services in our overall revenue mix.
Our continuous pitch of integrated IT Services and Telecom
services, both aligned to Cloud and Digital Consumption model, have
been significant differentiators for Sify, as more clients migrate
to the Cloud platform and adopt Digital model of doing
business.”
Mr. M P Vijay Kumar, CFO, said,
“Our revenue continues to maintain robust growth. The reduction in
depreciation is on account of completion of amortization of a
significant investment in the past for a major WAN project for a
customer. Over this quarter, we have continued our investments in
resources and skills enhancement, which will get monetized over
time.
“Our cash balance for the quarter was INR 1898
Million.”
Business Highlights
Telecom-centric services -
Comprises managed data services on our domestic and international
network and termination of voice calls over IP in our domestic and
international partner networks.
- Revenue for the Data and Managed
services business grew 11% over the same quarter last year.
Overall, revenue for Telecom business grew 2% primarily due to a
reduction in revenue from India voice termination
business.
- Key wins during the quarter include
a large Public-Sector bank, an insurance company, a State
Power Distribution Company and global R&D/engineering
company.
- Sify’s focus on OTT/content
providers continues to deliver growth with a large win from a fast
growing global CDN player. The contract covers offerings around the
network, colocation and the Internet exchange lines of
business.
- Sify also had two key wins in the
network transformation and outsourcing category. A leading
logistics company outsourced its network and security management
and a leading financial services company signed up to transform and
manage their network.
- Other key contracts won in this
segment were from a global manufacturing and engineering
conglomerate to deploy secure wireless mobility infrastructure
across all its offices, and a PSU bank in India as they continue to
drive the next generation of digitisation in bank branches.
- Sify also won its first IoT project
of scale in this quarter from a logistics company to drive
digitization of their supply chain.
Data Center-centric IT services
- Comprises managed colocation services at Sify’s six
concurrently-maintainable data centers, cloud services,
application-led services and technology integration-led
services
- Revenue from Data Center-centric IT services grew 25% over the
same quarter last year.
- In response to market demand, Sify added an additional 1440KW
of capacity at its Mumbai data center.
- Sify added some marque clients to their data center roster.
Among them are an Indian MNC for their energy business, a Content
caching MNC at two of our Data Centers, an international OTT player
to commission their Content PoP for North India and a world leader
in the audio components industry.
- One of the fastest growing private banks and a large Public
Sector bank also expanded their data center engagement with
us.
- Sify signed up 14 new customers for Cloud and Managed Services
this quarter.
- Sify launched an All Flash Storage platform as a utility
service offering in partnership with a global storage EOM
leader.
- Sify signed up 9 new customers for Talent Management and Supply
Chain management and a significant Government organisation for
Digital security.
- Sify’s offering of applications extended through alliances with
major players won 7 new clients this quarter for SAP, Oracle and
Microsoft services.
- Sify added 21 new clients this quarter for its Technology
Integration services.
- Sify also made major inroads into the Public-Sector banking
segment in Managed Security Services with two Public Sector banks
signing up for implementation and maintenance of Security
Operations Center (SOC), another to implement Intrusion Protection
system and provide Security services and a third to implement
Network Access control (NAC) system and provide Security
services.
- A Public-Sector Oil and Gas major contracted with Sify to build
their Data Center and manage its operations.
- This quarter, Sify became the first Indian company to find a
place in the Challengers Quadrant in Gartner’s MQ for Managed
Hybrid Cloud Market 2017- Asia.
- Amazon web services authorized Sify as a reselling partner for
Public Sector Units.
- For the second time, Sify has been certified for SAP for
Hosting Services, Cloud Services, Hana Services and Application
Managed Services.
About Sify TechnologiesSify is
the largest ICT service provider, system integrator, and all-in-one
network solutions company on the Indian subcontinent. We’ve also
expanded to the United States, with headquarters in the heart of
California’s Silicon Valley.Over 8500 businesses have become Sify
customers. We also partner with other major network operators to
deliver global network solutions. Our customers can access Sify
services via India’s largest MPLS network. Among the very few
Enterprise class player in India, Sify, today has presence in more
than 1550 cities in India and in North America, the United Kingdom
and Singapore. Sify, 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, 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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