Sify Technologies’ Q1 Loss After Tax Rs105 Mn

Sify reports revenues of INR 9,421 Million, EBITDA of INR 1,784 Million for Q1 FY 2024-25

Raju Vegesna, Chairman, Sify Technologies: 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

FinTech BizNews Service

Mumbai, July 20, 2024: Sify Technologies has reported Consolidated Financial Results for Q1 FY 2024-25.

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

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

*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)

Highlights:

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.”