UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of: June 2024
Commission File Number: 000-27663
SIFY TECHNOLOGIES LIMITED
(Translation of registrant’s name into English)
Tidel Park, Second Floor
No. 4, Rajiv Gandhi Salai, Taramani
Chennai 600 113, India
(91) 44-2254-0770
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Results of Operations and Financial Condition
On July 19, 2024, Sify Technologies
Limited announced its consolidated results under the International Financial Reporting Standards (IFRS) for the quarter ended June 30,
2024.
A copy of the press release is
attached hereto as Exhibit 99.1, which exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
EXHIBIT INDEX
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 19, 2024 |
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For Sify Technologies Limited |
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By: |
/s/ M P Vijay Kumar |
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Name: |
M P Vijay Kumar |
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Title: |
Executive Director and Chief Financial Officer |
Exhibit 99.1
For immediate release Chennai, India |
![](https://www.sec.gov/Archives/edgar/data/1094324/000157587224000802/sify047_ex99-1img01.jpg) |
July 19, 2024 | 8:30 AM ET
Sify reports Consolidated Financial Results for
Q1 FY 2024-25
Revenues of INR 9,421 Million. EBITDA of INR 1,784
Million.
Loss for the period INR 105 Million.
HIGHLIGHTS
| · | Revenue was INR 9,421 Million, an increase
of 10% over the same quarter last year. |
| · | EBITDA was INR 1,784 Million, an increase
of 3% over the same quarter last year. |
| · | Loss before tax was INR 46 Million. Loss after
tax was INR 105 Million. |
| · | CAPEX during the quarter was INR 2,656 Million. |
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman, said, “India
is currently in a remarkable phase of growth. The combination of pro-industry regulations, a supportive investment environment and a wealth
of skilled talent positions our nation as a key destination for international businesses. This confidence is driving investments and building
partnerships that benefit both enterprises and the broader economy.
The advancement in regulatory and taxation norms should
help accelerate investment in the network and data center landscape and enhance India’s status as a pivotal interconnect hub between
Asia and the Middle East. Our robust infrastructure and comprehensive services portfolio uniquely position Sify to seize these opportunities.
As enterprises and government entities advance their digital transformation and automation initiatives, Sify stands ready to support them
with our innovative digital tools and services”.
Mr. Kamal Nath, CEO, said, “As businesses
embark on digital transformation, they are reconfiguring their IT frameworks to incorporate multiple transformative solutions. All of
them with the common agenda of enhancing user satisfaction, ensuring operational resilience and protecting digital assets.
Our significant capital allocations and extensive
range of offerings are designed to effectively meet these ambitions. Our capability to provide innovative outcomes through our triad of
infrastructure and managed services uniquely positions us to support them throughout their digital transformation."
Mr. M P Vijay Kumar, ED & Group CFO, said,
“The International Accounting Standard Board’s (“IASB”) recently issued Accounting Standard IFRS 18 (Presentation
and Disclosure in Financial Statements) replacing IAS 1 (Presentation of Financial Statements). The new structure for the profit and loss
statement requires (i) the classification of income and expenses into three new categories - operating, investing and financing, and (ii)
the presentation of subtotals for operating profit or loss and profit or loss before financing and income taxes.
Although the IASB set an effective date as January
1, 2027, the Company will begin adhering to IFRS 18 beginning with its unaudited consolidated financial statements for the quarter ended
June 30, 2024. All prior periods presented herein have been presented in accordance with the new structure. There is no change in total
income or net profit.
We will continue to invest in expanding our network,
both fiber in the metros and terrestrial long distance, data center capacity and also strengthen our Digital services team by adding people
with the right skill sets and investing more in our Learning and Development initiatives. Fiscal discipline will continue to be remain
central to our focus and strategy.
The cash balance at the end of the quarter was INR
6,471 Million”.
BUSINESS HIGHLIGHTS
| · | The Revenue split between the
businesses for the quarter was Data Center colocation services 36%, Digital services 23% and Network services 41%. |
| · | During the quarter, Sify commissioned
6.5 MW capacity in Mumbai. |
| · | As of June 30,2024, Sify provides
services through 1055 fiber nodes across the country, a 16% increase over same quarter last year. |
| · | The network connectivity service
has now deployed 9415 SDWAN service points across the country. |
CUSTOMER ENGAGEMENTS
Among the most prominent new contracts during the quarter were the following:
Network Services
| · | The cloud platform of a global IT major contracted
for interconnect at one of their major locations. |
| · | The largest stock exchange, the regulatory body
for the securities market, and a national insurance major contracted Sify for a MPLS Network build. |
| · | The largest stock exchange also signed up for
WAN across their backbone network. |
| · | The largest Private bank contracted for managed
and secure SDWAN service. |
Data Center Services
| · | A global OTT player contracted for major Edge
Data Center location in a non-metro location |
| · | The country’s largest bank signed a multi-year
deal for capacity at Sify’s Data Center. |
| · | A Private bank chose to locate their Near Disaster
Recovery (NDR) in one of Sify Data Center. |
| · | Two Private banks contracted to expand their
capacity at different Sify Data Centers. |
| · | An IT major signed up to migrate from their on-premise
Data Center to Sify’s Data Center. |
Digital services
| · | Sify was contracted by the highest judicial body
in the country for a multi-year Data Center infrastructure build and related managed services. |
| · | A large private bank contracted for Network Managed
services for both their Data Center and Branch networks. |
| · | A digital enablement major opted to move their
online banking application to Sify’s Cloud platform. |
| · | An IT player, a chemicals manufacturer, an NBFC
and a training development organisation contracted to migrate from their on-premise Data Center to Sify’s Cloud platform. |
| · | These players also opted for managed services
like DRaaS and SaaS. |
| · | A Scheduled bank and a housing finance major
contracted for green field Cloud implementation. |
| · | A major steel producer and a retail MNC contracted
for multi-year managed services. |
| · | A logistics player signed up for managed security
services while a state power distribution company and a state co-operative bank contracted Sify to set up Security Operations Center (SOC)
at their premises. |
| · | The education and training bodies of a State
government and banking regulator signed up for online assessments, while a retail and power major signed up for Sify’s Cloud -based
supply chain solution. |
FINANCIAL HIGHLIGHTS
Unaudited Consolidated Income Statement as per IFRS
(In INR millions)
| |
Quarter ended | | |
Quarter ended | | |
Quarter ended | | |
Year ended
March 2024 | |
Description | |
June 2024 | | |
June 2023 | | |
March 2024 | | |
(Audited) | |
Revenue | |
| 9,421 | | |
| 8,547 | | |
| 9,637 | | |
| 35,634 | |
Cost of Sales | |
| (5,961 | ) | |
| (5,371 | ) | |
| (6,108 | ) | |
| (22,378 | ) |
Gross Profit | |
| 3,460 | | |
| 3,176 | | |
| 3,529 | | |
| 13,256 | |
Other Operating Income | |
| 88 | | |
| 42 | | |
| 182 | | |
| 379 | |
Selling, General and Administrative Expenses | |
| (1,676 | ) | |
| (1,421 | ) | |
| (1,700 | ) | |
| (6,462 | ) |
Depreciation and Amortisation expense | |
| (1,306 | ) | |
| (1,118 | ) | |
| (1,259 | ) | |
| (4,773 | ) |
Operating Profit | |
| 566 | | |
| 679 | | |
| 752 | | |
| 2,400 | |
Investment Income | |
| 58 | | |
| 9 | | |
| 25 | | |
| 156 | |
Profit before financing and income taxes | |
| 624 | | |
| 688 | | |
| 777 | | |
| 2,556 | |
Interest expenses on borrowings and lease liabilities | |
| (670 | ) | |
| (569 | ) | |
| (641 | ) | |
| (2,322 | ) |
Interest expenses on pension liabilities | |
| - | | |
| - | | |
| - | | |
| (2 | ) |
Profit/(Loss) before income taxes | |
| (46 | ) | |
| 119 | | |
| 136 | | |
| 232 | |
| |
| | | |
| | | |
| | | |
| | |
Income Tax Expense | |
| (59 | ) | |
| (54 | ) | |
| (98 | ) | |
| (183 | ) |
Profit/(Loss) for the period | |
| (105 | ) | |
| 65 | | |
| 38 | | |
| 49 | |
| |
| | | |
| | | |
| | | |
| | |
Reconciliation with Management-defined Performance Measures* | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
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Operating Profit | |
| 566 | | |
| 679 | | |
| 752 | | |
| 2,400 | |
Add: | |
| | | |
| | | |
| | | |
| | |
Depreciation and Amortisation expense | |
| 1,306 | | |
| 1,118 | | |
| 1,259 | | |
| 4,773 | |
Less: | |
| | | |
| | | |
| | | |
| | |
Interest expenses on pension liabilities | |
| - | | |
| - | | |
| - | | |
| (2 | ) |
Other Income (including exchange gain/loss) | |
| (88 | ) | |
| (73 | ) | |
| (187 | ) | |
| (415 | ) |
EBITDA | |
| 1,784 | | |
| 1,724 | | |
| 1,824 | | |
| 6,756 | |
*Management-defined Performance Measures (MPMs)
Sify uses Earnings before Interest, Tax, Depreciation
and Amortisation (EBITDA) as the management-defined performance measure in its public communications. This measure is not specified by
IFRS Accounting Standards and therefore might not be comparable to apparently similar measures used by other entities.
Segment Reporting:
(In INR millions)
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Q1 2024-25 | | |
Q1 2023-24 | |
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Data | | |
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Data | | |
| | |
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Network | | |
Center Colocation | | |
Digital | | |
| | |
Network | | |
Center Colocation | | |
Digital | | |
| |
| |
Services | | |
Services | | |
Services | | |
Total | | |
Services | | |
Services | | |
Services | | |
Total | |
Particulars | |
(A) | | |
(B) | | |
(C) | | |
(D)= (A)+(B)+(C) | | |
(A) | | |
(B) | | |
(C) | | |
(D)= (A)+(B)+(C) | |
External customers Revenue | |
| 3,865 | | |
| 3,360 | | |
| 2,196 | | |
| 9,421 | | |
| 3,427 | | |
| 2,704 | | |
| 2,416 | | |
| 8,547 | |
Intersegment Revenue | |
| | | |
| 22 | | |
| 55 | | |
| 77 | | |
| | | |
| 22 | | |
| 56 | | |
| 78 | |
Operating Expense | |
| (3,261 | ) | |
| (1,966 | ) | |
| (2,397 | ) | |
| (7,624 | ) | |
| (2,872 | ) | |
| (1,546 | ) | |
| (2,404 | ) | |
| (6,822 | ) |
Intersegment Expense | |
| (63 | ) | |
| | | |
| (14 | ) | |
| (77 | ) | |
| (63 | ) | |
| | | |
| (14 | ) | |
| (77 | ) |
Segment Result | |
| 541 | | |
| 1,416 | | |
| (160 | ) | |
| 1,797 | | |
| 492 | | |
| 1,180 | | |
| 54 | | |
| 1,726 | |
Unallocated Expense: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Support Service Unit Costs | |
| | | |
| | | |
| | | |
| (44 | ) | |
| | | |
| | | |
| | | |
| (47 | ) |
Depreciation & Amortisation | |
| | | |
| | | |
| | | |
| (1,306 | ) | |
| | | |
| | | |
| | | |
| (1,118 | ) |
Other income / (expense), net | |
| | | |
| | | |
| | | |
| 24 | | |
| | | |
| | | |
| | | |
| 15 | |
Finance Income | |
| | | |
| | | |
| | | |
| 122 | | |
| | | |
| | | |
| | | |
| 25 | |
Finance Expense | |
| | | |
| | | |
| | | |
| (639 | ) | |
| | | |
| | | |
| | | |
| (482 | ) |
Profit / (loss) before tax | |
| | | |
| | | |
| | | |
| (46 | ) | |
| | | |
| | | |
| | | |
| 119 | |
Income taxes (expense) / benefit | |
| | | |
| | | |
| | | |
| (59 | ) | |
| | | |
| | | |
| | | |
| (54 | ) |
Profit / (loss) for the period | |
| | | |
| | | |
| | | |
| (105 | ) | |
| | | |
| | | |
| | | |
| 65 | |
Highlights:
(In INR millions) | |
30.06.2024 | | |
30.06.2023 | | |
31.03.2024 | |
EQUITY | |
| 17,369 | | |
| 15,210 | | |
| 15,230 | |
BORROWINGS | |
| | | |
| | | |
| | |
Long term | |
| 16,717 | | |
| 14,897 | | |
| 17,608 | |
Short term | |
| 7,218 | | |
| 6,581 | | |
| 6,937 | |
About Sify Technologies
A 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 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 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 Digital services and conduct their business seamlessly
from more than 1700 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, 2024, 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 9840926523
praveen.krishna@sifycorp.com |
|
20:20 Media
Nikhila Kesavan
+91 9840124036
nikhila.kesavan@2020msl.com |
|
Weber Shandwick
Lucia Domville
+1-212 546-8260
LDomville@webershandwick.com
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