EARNING CALLS DETAILS
Oct 20, 2023 | 8:30 AM ET
To join: Toll Free: 888-506-0062, International: 973-528-0011,
Participant Access Code: 219546
On the call: Mr. Raju Vegesna, Chairman of the Board, Mr. M P
Vijay Kumar, Executive Director & Group CFO and Mr. Kamal Nath,
Chief Executive Officer
Live webcast:
https://www.webcaster4.com/Webcast/Page/2184/49194
Archives: Toll Free: 877-481-4010, International: 919-882-2331,
Replay Passcode: 49194.
Replay available until Friday, October 27, 2023
---------------------------------------------------------------------------------------------------------------
HIGHLIGHTS
- Revenue was INR 8,791
Million, an increase of 11% over the same quarter last
year.
- EBITDA was INR 1,519
Million, an increase of 1% over the same quarter last
year.
- Profit before tax was INR 52
Million, a decrease of 76% versus the same
quarter last year.
- Profit after tax was INR 15
Million, a decrease of 87% versus the same quarter last
year.
- CAPEX during the quarter was
INR 1,797 Million.
(IN INR MILLION) |
30.09.2023 |
31.03.2023 |
EQUITY |
22,040 |
17,146 |
BORROWINGS |
|
|
Long term |
16,972 |
13,818 |
Short term |
6,557 |
6,662 |
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman, said, “India’s Data
Policy is entering the final phase of being adopted into law. This
will give shape and clarity to data ecosystem and formalize
regulation around Data security, which will help accelerate
investment in India’s Data Center landscape. This will also lead to
India being viewed as a more viable interconnect point between Asia
and the Middle East by international connectivity players.
Enterprises exploring digital transformation and
government entities looking to automate social welfare systems will
be an important target audience for Sify’s digital transformation
tools and services.”
Mr. Kamal Nath, CEO, said, “As
Enterprises pursue their digital transformation and digitalization
objectives, they are also re-calibrating their digital
infrastructure across hybrid cloud, network, security and edge
infrastructures. Customer experience, business continuity, cyber
security, application modernization and overall adoption of AI
models are the prime drivers for this recalibration.
Our infrastructure investments and services
portfolio are fundamentally aligned to meet the customer goals.
Simultaneously, we are continuously engaged with our customers to
identify their specific needs and selectively recalibrate our
propositions to support the same.”
Mr. M P Vijay Kumar, ED & Group CFO,
said, “We continue to make substantial investment in
capacity creation and people to build skill sets for IT services
opportunities we foresee, given the digital transformation
engagements that India Inc is actively pursuing. This has led to
the accompanying depreciation and interest cost, reflecting on our
net profit.
We are also actively scaling up our sustainable measures across
all businesses, especially our Data Centers.
The cash balance at the end of the quarter was
INR 7570 Million”.
BUSINESS HIGHLIGHTS
- The Revenue split between the
businesses for the quarter was Data Center colocation services 31%,
Digital services 28% and Network services 41%.
Business Revenue (INR Millions) |
Q2 FY 2023-24 |
Q2 FY 2022-23 |
FY 2022-23 |
% Growth Q2 2023-24 vs Q2 2022-23 |
Data Center services |
2717 |
2547 |
10125 |
7 |
Digital Services |
2503 |
2004 |
9988 |
25 |
Network services |
3571 |
3387 |
13291 |
5 |
TOTAL |
8791 |
7938 |
33404 |
|
- During the quarter, Sify added 1.2
MW of new Data Center capacity.
- As on September 30, 2023, Sify has
deployed 6535 SDWAN service points across the country.
- Sify now provides services via 952
fiber nodes across the country, a 14% increase over the same
quarter last year.
- During the quarter, Sify invested
USD 1.5 Million in start-ups in the Silicon Valley area as part of
our Corporate Venture Capital initiative. To date, the cumulative
investment stands at USD 7.07 Million.
CUSTOMER ENGAGEMENTS
Among the most prominent new contracts during the quarter were
the following:
Data Center Services
- Two public sector and one private
bank signed up for colocation space.
- A privately held international stock
broking firm entering India contracted for colocation space.
- A private bank migrated from their
on-premise Data Center to Sify Data Center.
- A private telecom player will set up
their disaster recovery unit at one of Sify’s locations.
- One of India’s largest private bank
contracted for DC expansion and refresh.
Digital services
- A state government welfare
department and two private enterprises signed up to migrate from
their on-premise DC to Sify’s Cloudinfinit platform, along with
managed services.
- A NBFC, a health solutions player,
an insurance broker and a steel major contracted for Sify
greenfield cloud implementation.
- A division of a state government
signed up for a complete platform migration and managed
services.
- One of the larger online insurance
policy platforms, a hosiery major, one of the oldest content
service providers, a software player and a citizen service provider
signed up for Sify’s digital services.
- The technology partner of the Union
government, a State government data center, the power distribution
arm of another state government, a private power transmission
player, a private insurance major, a white goods, an industrial
chemical manufacturer and an insurance information bureau signed up
for managed services.
- More than a million online
assessments were conducted for an autonomous banking institute and
a government service selection platform.
- An international power products
manufacturer and another refrigeration major signed up for Sify’s
cloud-based supply chain solution.
Network Services
- A leading Indian airline has
contracted for the management of its entire network infrastructure,
including Network Operations Center.
- A heavy machinery distributor and a
Spirits major contracted for managed and secure SD WAN.
- Sify also contracted for network
expansion with multiple prominent banks, a tyre manufacturer and a
logistics major.
- One of the global outsourcing
majors, a personal care conglomerate and an Edutech startup signed
up for hosted contact and CPaaS services.
- During the quarter, Sify activated
its VNO license to support SIP trunking in India.
FINANCIAL HIGHLIGHTS
Unaudited Consolidated Income Statement as per
IFRS |
|
|
(In INR millions) |
|
|
|
|
Quarter ended |
Quarter ended |
Quarter ended |
Description |
September |
September |
June |
|
2023 |
2022 |
2023 |
|
|
|
|
|
|
|
|
Revenue |
8,791 |
|
7,938 |
|
8,547 |
|
Cost of Revenues |
(5,509 |
) |
(4,988 |
) |
(5,371 |
) |
Selling, General and Administrative Expenses |
(1,763 |
) |
(1,441 |
) |
(1,452 |
) |
|
|
|
|
EBITDA |
1,519 |
|
1,509 |
|
1,724 |
|
|
|
|
|
Depreciation and Amortisation expense |
(1,217 |
) |
(956 |
) |
(1,118 |
) |
Net Finance Expenses |
(307 |
) |
(362 |
) |
(471 |
) |
Other Income (including exchange gain/loss) |
57 |
|
29 |
|
14 |
|
|
|
|
|
Profit before tax |
52 |
|
220 |
|
149 |
|
Current Tax |
(201 |
) |
(167 |
) |
(147 |
) |
Deferred Tax |
164 |
|
59 |
|
93 |
|
Profit for the period |
15 |
|
112 |
|
95 |
|
|
|
|
|
Profit attributable to: |
|
|
|
Reconciliation with Non-GAAP measure |
|
|
|
Profit for the period |
15 |
|
112 |
|
95 |
|
Add: |
|
|
|
Depreciation and Amortisation expense |
1,217 |
|
956 |
|
1,118 |
|
Net Finance Expenses |
307 |
|
362 |
|
471 |
|
Current Tax |
201 |
|
167 |
|
147 |
|
Less: |
|
|
|
Deferred Tax |
(164 |
) |
(59 |
) |
(93 |
) |
Other Income (including exchange gain/loss) |
(57 |
) |
(29 |
) |
(14 |
) |
EBITDA |
1,519 |
|
1,509 |
|
1,724 |
|
|
|
|
|
|
|
|
|
About Sify TechnologiesA Fortune
India 500 company, Sify Technologies is India’s most comprehensive
ICT service & solution provider. With Cloud at the core of our
solutions portfolio, Sify is focused 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
state-of-the-art Data Centers, the largest MPLS network,
partnership with global technology majors, and deep expertise in
business transformation solutions modelled on the cloud, make it
the first choice of start-ups, SMEs 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 a presence across North America, the United Kingdom and
Singapore.
Sify, Sify Technologies, Sify Infinit Spaces and
Sify Digital Services 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, 2023, 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 LimitedPraveen KrishnaInvestor
Relations & Public Relations+91 44 22540777
(ext.2055)praveen.krishna@sifycorp.com |
Grayling Investor RelationsLucia
Domville+1-646-824-2856Lucia.Domville@grayling.com |
20:20 Media Nikhila Kesavan+91
9840124036nikhila.kesavan@2020msl.com |
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