Sify reports Revenues of INR 5899 Million for Second Quarter of FY 2020-21
October 23 2020 - 8:07AM
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3b5d226f-43a4-417f-947a-25b0c0476889
PERFORMANCE HIGHLIGHTS:
- Revenue
for the quarter was INR 5899
Million, a growth
of 2% over the same
quarter last year.
- EBITDA
for the quarter was INR 1189
Million, an increase of
12% over the same quarter last
year.
- Profit
before tax for the quarter was INR 414
Million, an
increase of
48% over the same quarter last
year.
- Profit
after tax for the quarter was INR 257
Million, an
increase of
35% over the same quarter last
year,
- CAPEX
during the quarter was INR 797
Million.
- Cash
balance at the end of the quarter was INR
4242 Million.
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman,
said, “As the pandemic continues, Sify has shifted its focus from
business continuity to business transformation. As our clients gain
confidence in our ability to ensure their effective IT operations,
they are increasingly turning to our Digital Services, seeking
transformation capabilities to help them to further automate their
operations in anticipation of the “new normal”. Our IT services
infrastructure, network services, automation skillsets and
knowledge of the evolving IT landscape has ticked the right boxes
for clients as they evolve their IT capabilities.
The breadth of projects executed has helped Sify
mature its Digital Services and is establishing us as a Digital
Transformation Specialist with a full range of convergence
capabilities”.
Mr. Kamal Nath, CEO, said,
“During the quarter, we have witnessed the urgency among clients to
adopt IT infrastructure models which would provide them the agility
and flexibility to run their businesses remotely during crisis.
Hybrid IT model built on hybrid cloud infrastructure is evolving as
the way to go. Our “Cloud@core” model of products and services are
completely aligned to the trend and is finding wide acceptance with
customers who have realized the natural fitment of the model not
only for digital optimization but also for digital
transformation.”
Mr. M P Vijay Kumar, CFO, said,
“Our people commitment and business continuity processes have
ensured that operating performance continued to remain steady
throughout this period of caution. We will be conservative in our
operating spends, while we increase our Capex to support the
anticipated demand for our data center and network
infrastructure.
Cash balance at end of the quarter was INR 4242 Million”.
FINANCIAL HIGHLIGHTS
Sify Technologies Limited
Unaudited Consolidated Income Statement as
per IFRS(In INR millions)
|
|
|
|
|
Quarter ended |
Quarter ended |
Quarter ended |
Description |
September |
September |
June |
|
2020 |
2019 |
2020 |
|
|
|
|
|
|
|
|
Revenue |
5,899 |
|
5,807 |
|
5,259 |
|
Cost of Revenues |
(3,647 |
) |
(3,650 |
) |
(3,103 |
) |
Selling, General and Administrative Expenses |
(1,063 |
) |
(1,096 |
) |
(1,003 |
) |
|
|
|
|
EBITDA |
1,189 |
|
1,061 |
|
1,153 |
|
|
|
|
|
Depreciation and Amortisation expense |
(667 |
) |
(527 |
) |
(658 |
) |
Net Finance Expenses |
(142 |
) |
(261 |
) |
(236 |
) |
Other Income (including exchange gain) |
42 |
|
15 |
|
15 |
|
Other Expenses (including exchange loss) |
(8 |
) |
(8 |
) |
(8 |
) |
|
|
|
|
Profit before tax |
414 |
|
280 |
|
266 |
|
Income tax expense |
(157 |
) |
(89 |
) |
(94 |
) |
Profit for the period |
257 |
|
191 |
|
172 |
|
|
|
|
|
Profit attributable to: |
|
|
|
Reconciliation with Non-GAAP measure |
|
|
|
Profit for the period |
257 |
|
191 |
|
172 |
|
Add: |
|
|
|
Depreciation and Amortisation expense |
667 |
|
527 |
|
658 |
|
Net Finance Expenses |
142 |
|
261 |
|
236 |
|
Other Expenses (including exchange loss) |
8 |
|
8 |
|
8 |
|
Income tax expense |
157 |
|
89 |
|
94 |
|
Less: |
|
|
|
Other Income (including exchange gain) |
(42 |
) |
(15 |
) |
(15 |
) |
|
|
|
|
EBITDA |
1,189 |
|
1,061 |
|
1,153 |
|
|
|
|
|
BUSINESS HIGHLIGHTS
|
• |
Revenue from Data Center centric IT Services grew 12% against the
same quarter last year. |
|
• |
Segment-wise, revenue from Data Center Services, Cloud and Managed
Services and Technology Integration Services grew 36%, 9% and 22%
respectively, while revenue from Applications Integration Services
fell by 37%. |
|
|
|
|
• |
Revenue from Network Centric Services fell by 8% over the same
quarter last year. |
|
• |
Segment-wise, revenue from Data Connectivity Services grew 3% while
revenue from the Voice business fell by 36%. |
GROWTH
DRIVERS
The pandemic has accelerated the primary growth
drivers in the market for 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 multi-service Digital
Transformation 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: |
|
• |
3 customers contracted to have their workload migrated from their
on-premise DC to multi-cloud, including one of India’s oldest
software majors, a leading fashion brand and one of the most
established banks in India. |
|
• |
3 customers contracted for greenfield Cloud implementation; among
them a leading automotive financial company, the mining subsidiary
of one of India’s oldest MNCs and a Public Sector Steel and Wire
company. |
|
• |
10 new customers signed up for multiple services like CDN, DRaaS,
PaaS and IaaS from verticals such as IT, Manufacturing, Financial
Services, Real estate, and Data Analytics. |
|
• |
6 major customers migrated from their on-premise Data Center to
Sify DC. Among them were a subsidiary of the Central bank, a global
content delivery major, the earlier mentioned automotive financial
company, a mobility player, a private bank and an accredited
insurance administrator. |
|
• |
2 customers signed up for multi-year complete Digital
Transformation services to build and deploy new age Hybrid IT
services, DC colocation services, Cloud services, Managed Network
and Security services. |
|
• |
3 customers contracted Sify for Cloud managed services from IT and
Business Processing verticals. |
Network centric
Services added 43 new customers in the quarter.
|
• |
This quarter, Sify added an interconnect path to the cloud with the
commissioning of Oracle Fast Connect. |
|
• |
In a major win for the IoT services, a major retail chain signed up
for Energy management across their business. |
|
• |
Sify was contracted to build the on-premise and pan India SDWAN for
the Central government’s payment gateway. Separately, a public
sector non-life Insurance company, an IT major and a logistics
player contracted with Sify for managed and secure SD-WAN
services. |
|
• |
6 public and 1 private BFSI players, 8 institutions of higher
learning and 7 manufacturing majors signed up for remote
collaboration services. |
|
• |
An US MNC contracted Sify to build a contact center service to
enhance their Enterprise service experience. |
|
• |
2 banks, a subsidiary of the Central bank and 2 private NBFCs
contracted with Sify to expand their existing engagement for
Information Security services. |
About Sify Technologies
Sify Technologies is India’s most comprehensive
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, Networks 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, 2020, 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 |
Grayling Investor Relations |
20:20 Media |
|
|
|
Mr. Praveen Krishna |
Shiwei Yin |
Nikhila Kesavan |
Investor Relations & Public Relations |
+1-646-284-9474 |
+91 9840124036 |
+91 44 22540777 (ext.2055) |
Shiwei.Yin@grayling.com |
nikhila.kesavan@2020msl.com |
praveen.krishna@sifycorp.com |
|
|
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