Sify reports Revenues of INR 5509 Million for Second Quarter of FY 2018-19
October 22 2018 - 08:41AM
EBITDA for the Quarter stood at INR 771
Million
PERFORMANCE HIGHLIGHTS:
- Revenue for the quarter was INR 5509 Million, an increase of
14% over the same quarter last year.
- EBITDA for the quarter was INR 771 Million, an increase of 8%
over the same quarter last year.
- Net Profit for the quarter was INR 253 Million, an increase of
25% over the same quarter last year.
- CAPEX during the quarter was INR 598 Million.
- Cash balance at the end of the quarter was INR 1466
Million.
FINANCIAL HIGHLIGHTS
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Sify Technologies
Limited |
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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 |
Quarter ended |
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Description |
September |
September |
June |
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2018 |
2017 |
2018 |
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Revenue |
5,509 |
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4,840 |
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4,683 |
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Cost of Revenues |
(3,470 |
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(3,067 |
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(2,845 |
) |
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Selling, General and Administrative Expenses |
(1,268 |
) |
(1,057 |
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(1,097 |
) |
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EBITDA |
771 |
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716 |
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741 |
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Depreciation and Amortisation expense |
(384 |
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(524 |
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(387 |
) |
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Net Finance Expenses |
(175 |
) |
(74 |
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(134 |
) |
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Other Income (including exchange gain) |
67 |
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85 |
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34 |
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Other Expenses (including exchange loss) |
(26 |
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- |
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(53 |
) |
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Profit before tax |
253 |
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203 |
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201 |
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Income tax expense |
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Profit for the period |
253 |
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203 |
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201 |
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Profit attributable
to: |
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Reconciliation with Non-GAAP measure |
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Profit for the period |
253 |
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203 |
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201 |
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Add: |
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Depreciation and Amortisation expense |
384 |
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524 |
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387 |
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Net Finance Expenses |
175 |
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74 |
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134 |
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Other Expenses (including exchange loss) |
26 |
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- |
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53 |
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Income tax expense |
- |
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- |
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- |
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Less: |
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Other Income (including exchange gain) |
(67 |
) |
(85 |
) |
(34 |
) |
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EBITDA |
771 |
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716 |
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741 |
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MANAGEMENT COMMENTARY Mr.
Raju Vegesna, Chairman, said, “We continue to see more
Global and Domestic Enterprises contracting us for their pan-India
implementation. These companies are able to leverage the
maturity of our Telecom and Data Center business to shrink their
go-to-market time. The Government’s aggressiveness on
digitization is also continuing to open up opportunities for our
broader set of services.”
Mr. Kamal Nath, CEO, said, “Our
recent wins are an endorsement of our vertical go-to-market
strategy that was introduced a year earlier. This is reflecting
positively on our revenue mix, profitability and new order book.
Recent public policy changes regarding proposed data protection
regulations in India and the Central Bank’s directive on domiciling
data in the country of origin is driving demand as more global
players look at hosting their applications within India. Our
“Cloud@Core” service lines are perfectly aligned to cater to these
demands.”
Mr. M P Vijay Kumar, CFO, said,
“We continue our investments, specifically in Data Center
infrastructure and enhancement of our network and IT managed
services portfolio. While our revenues continue to grow, we
continue to focus on fiscal prudence in the face of a tightening
market.
Our cash balance at the end of the quarter
stands at INR 1466 Million.”
CORPORATE COMMENTARY
Mr. Arun Seth has been appointed as Independent
Director and Member, Audit Committee, subject to the approval of
shareholders. A respected Telecom leader, Mr. Seth was the founding
Managing Director of British Telecom in India and is an active
evangelist of the software product eco-system. With his
appointment, Sify is now fully compliant with the NASDAQ Listing
Rule 5605 on the number of Independent Directors on the Board and
Audit Committee. A detailed announcement will follow shortly.
- Revenue from Data Center centric IT Services grew by 25% during
the same quarter last year.
- Segment-wise, revenue from Data Center Services, Cloud and
Managed Services and Technology Integration services grew by 36%,
76% and 52% respectively. Revenue from Applications Integration
Services fell by 25%, post-delivery last year of the largest online
examinations.
- Revenue from Telecom centric services grew by 4% over the same
quarter last year.
- Segment-wise, revenue from Data and Managed Services grew 11%
while revenue from the Wholesale Voice business fell by 9% over the
same quarter last year.
BUSINESS HIGHLIGHTS
GROWTH DRIVERS
Indian enterprises are in the mode of
accelerated adoption of cloud model to drive their digital
transformation and digitalization initiatives. The cloud adoption
is being driven by the need of scalability and flexibility need of
DCs as well as the need for digital tools like Artificial
intelligence, Advanced Analytics, IoT, Machine Learning. This trend
is visible among almost all the verticals of the industry.
This is driving usage and monetization of cloud
infra, data centers and cloud aligned network infrastructures- the
areas where Sify has invested majorly in India.
Sify views its services business around cloud
migration and management and cloud security to be an area of fast
growth.
On the Telecom front, Sify’s Cloud and DC
centric infrastructure was further expanded to include cloud
interconnections with Google Cloud during the quarter and launch of
the nx400G capable metro infrastructure in the cities of Chennai
and Bengaluru. Sify also augmented its wireless network across
India, with 200 new base stations commissioned.
KEY WINS
A consolidated list of the key sign ups during the quarter is as
below:
- 17 customers signed up to have their workload migrated from
their on-premise DC to multiple clouds like Sify Cloud Infinit, AWS
and Azure. These cover key verticals such as Power, Health,
Technology, Finance Institutions and FMCG.
- 15 customers have signed up with Sify for greenfield cloud
project implementation. These cover verticals such as Technology,
Logistics, healthcare, Power, Fashion, Heavy Engineering, Chemicals
etc.
- 14 new customers have signed up for Disaster Recovery as a
Service (DRaaS) across verticals like Renewable Power, Chemical
Engineering, Health, Technology, Automobile Finance, Infrastructure
finance, Accounting and Logistics.
- 12 customers have contracted Sify to migrate their on-premise
Data Center to Sify’s Data Center. These range from Insurance,
Power Transmission, Media, NBFCs, Electrical Engineering etc.
- 8 new customers across Banking and Health and State Governments
signed up for building Private Cloud at their Data Center.
- 4 new customers also contracted Sify for setting up of their
Disaster Recovery center. These customers span verticals like
Banking, Government and Insurance.
- 9 new customers signed up for Information Security services
covering verticals like the Central Government Power sector, State
Government, Banking etc.
- 6 new customers signed up for Digital encryption.
- 3 new customers across Defence and the Government signed up for
cloud based online test this quarter.
- The Telecom Centric Services added
427 new customers in the quarter.
- Key wins in the quarter include a leading FMCG company in India
that outsourced its Wide Area Network to Sify.
- Sify won a Managed WiFi contract from two leading manufacturing
conglomerates in India. The edge/WiFi deployment will cover
multiple locations for both customers across the country in the
next few quarters.
- Sify’s managed and secure SD-WAN offering has seen early
traction in the market place with wins across the pharmaceutical
and manufacturing verticals.
- Other notable wins in the quarter include contracts for
Inter-cloud connectivity for a leading Asian cloud provider.
- Sify also won a large contract to build a network for a
European technology provider that will connect their multiple sites
in India as well as across the globe.
About Sify TechnologiesSify is
the largest ICT service provider, systems 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 10000 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 1600 cities in India and in 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, 2018, 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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