Sify Reports Revenues of INR 2222 Million for Third Quarter of Fiscal Year
EBITDA for the quarter at INR 206 million
CHENNAI, India -- January 28, 2013
Sify Technologies Limited (NASDAQ Global Markets: SIFY), a leader in Managed
Enterprise, Network and IT Services in India with growing global delivery
capabilities, today announced its consolidated results under International
Financial Reporting Standards (IFRS) for the third quarter of fiscal year
Performance Highlights Q3 FY 2012-13:
*Sify reported revenues of INR 2222 million for the quarter ended December
31^st, 2012 against revenues of INR 1805 million for the corresponding
quarter of the previous year, a growth of 23%.
*EBITDA for the quarter increased to INR 206 million, as compared to INR
135 million in the corresponding quarter previous year.
*Net loss for the quarter was INR 56 million, as against a net loss of INR
74 million in the corresponding quarter previous year.
*CAPEX during the quarter was INR 296 million. Cash balance at the end of
the quarter was INR 811 million.
Mr. Raju Vegesna, Chairman, said, “In my discussions with business leaders
across the globe, I am seeing a common factor emerging. The IT and telecom
industry is moving towards consolidation and with it, an increasing focus on
applications and IT solutions that span the networking and IT services
portfolios. Clients are asking for cost-effective solutions that leverage our
existing portfolio and are tailored to their needs. In doing so, we are
drawing largely on the accumulated skill sets and knowledge base built over
the years. This is also increasing the absolute demand for data storage and
transfer, the biggest beneficiaries being our network and hosting business. It
is heartening to see Sify become a preferred solution provider for both
large-scale Government and private IT projects. Their confidence stems from
the fact that Sify, as a company has grown through the IT life cycle and is
therefore uniquely able to navigate the challenges in the industry.”
Mr. Kamal Nath, CEO, said, “Our Sify 3.0 go-to-market strategy & offerings are
being well-accepted by both our large existing customer base and new clients
as well. We are seeing a significant shift from the “Purchase of IT
Infrastructure” model to the “Subscription of IT Infrastructure” model, both
in the Large Enterprise and SME segments. Our Cloud Infinit offering and
Private Cloud solutions offer great options for Enterprises to adopt this
model. We are also benefiting from the network consolidation trend, as Large
Enterprises reduce the number of Network Service Providers. The coming quarter
focus will predominantly be driven by these two trends, as we had identified
these early and are well engaged with our clients.”
Mr. M P Vijay Kumar, CFO, said, “The past few quarters have been demanding for
the telecom industry in India. While Sify’s growth has been much stronger than
many others in the industry, we continue to run a tight ship and keep a strict
vigil on our expenses. That said, Sify has made selective capital investments
in fields where we have established a strong market position. This will ensure
we have sufficient capacity for growth when the revenue cycle becomes robust.”
Cash balance at the end of the quarter was INR 811 million.
income statement as
(In INR millions)
Description Quarter ended Quarter ended Quarter ended
December December Sept
2012 2011 2012
Enterprise 2,030 1,591 1,882
Software 192 214 178
Revenue 2,222 1,805 2,060
Cost of Revenues (1,279 ) (1,015 ) (1,125 )
Selling, General and
Administrative (737 ) (655 ) (782 )
EBITDA 206 135 153
Depreciation and (220 ) (172 ) (208 )
Net Finance Expenses (47 ) (57 ) (17 )
Other Income 5 17 17
Share of Affiliates - 3 -
Profit from sale of
shares in affiliate - - 658
and rights therein
Profit / (loss) Before (56 ) (74 ) 603
Income Taxes - - -
Profit / (loss) for (56 ) (74 ) 603
Profit / (loss) for (56 ) (74 ) 603
Depreciation and 220 172 208
Net Finance Expenses 47 57 17
Other Income (5 ) (17 ) (17 )
Share of Affiliates - (3 ) -
Profit from sale of
shares in affiliate - - (658 )
and rights therein
EBITDA 206 135 153
Our strategy of increasing market coverage through network expansion is
*Revenue of Network services has grown 10% over last quarter.
*Data business continues to grow with a robust 17% growth over same quarter
*Our network now reaches over 1000 cities and towns in India; Sify is now
the network of choice for customers and carriers looking for coverage.
*We have won new large accounts from PSUs and BFSI.
*We have won a large order for IP Transit from one of India’s largest
broadband service providers, leveraging our recent investment in submarine
cable systems and our cable landing station.
*Emerging enterprises is experiencing robust demand in Tier II and III
*Wholesale Voice grew by 20% over last quarter.
*Sify won the Vision 2012 awards for Best Connectivity Partner at Nation
Co-operative Banking Summit 2012.
*Revenue for Hosting Business has grown 4% over last quarter and 22% over
the same quarter last year.
*We won multi-year Hosting contracts from System Integrators.
*We also won a large multi-year Hosting Service Contract from a Top Indian
*We concluded Strategic alliances with major system integrators to bundle
our hosting services with their offerings.
*Our upcoming data center at Noida has been certified to global Tier III
standards by Uptime Institute, a major global data center certifying
*We launched Disaster Recovery (DR)-as-a-Service and Business Continuity
Management on the Cloud platform.
*We launched a few ISV applications deployment on Cloud for various
*In order to strengthen confidence in the Cloud Services, a major Internal
IT workload is being moved to the Cloud as proof-of-concept (PoC).
*We won some large strategic accounts for Managed Services (Infrastructure
This business now includes eLearning and portals
*We had major wins in the Engineering, Media and Logistics industry for our
*Sify eLearning business has grown 20% over the previous quarter.
*Sify was selected to consult for a multinational corporation for their
initiative to train students in India.
*Sify.com registered a growth of 45% in new visitors against same quarter
*Sify Scores widget, which provides the latest on Cricketing action, has
been launched on websites of multiple partners.
*Our Android application for the bullion market saw over 30% increase Q on
Q in new signups.
*We won the Asian Learning Leadership Award (Dubai) for the most innovative
new product and a second Brandon Hall award this year for Best Advance in
*We won the eIndia summit award for this year, based on the uniqueness of
our Aadhar certification platform.
About Sify Technologies
Sify is among the largest integrated Managed Network, IT and Software services
companies in India, offering end-to-end solutions with a comprehensive range
of products delivered over a common telecom data network infrastructure
reaching more than 1000 cities and towns in India.
A significant part of the company’s revenue is derived from Corporate
Enterprise Services, which include Network and IT services, Connectivity,
Security, Network management services, Enterprise applications, Hosting and
Remote Infrastructure Management Services. A varied product portfolio at
multiple price points allows Sify to also cater to the burgeoning demands of
the SMB/SOHO community and the retail consumer; much of it on the cloud
Sify is a recognized ISO 9001:2008 certified service provider for network
operations, data center operations and customer support, and for provisioning
of VPNs, Internet bandwidth, VoIP solutions and integrated security solutions,
and ISO / IEC 20000 - 1:2005 and ISO/IEC 27001:2005 certified for Internet
Data Center operations. Sify has also built a credible reputation in the
emerging Cloud Computing market and is today, regarded as a domain expert.
Sify has licenses to operate NLD (National Long Distance) and ILD
(International Long Distance) services and offers VoIP backhaul to long
distance subscriber telephony services. With the Sify Cable landing station
and the partnerships inked with several cable companies globally, Sify is
present in almost all the spheres of the ICT eco system.
The company has an expanding base of Managed Services customers, both in India
and overseas, and is also India’s first enterprise managed services provider
to launch a Security Operations Center (SOC)to deliver managed security
Sify Software develops applications and offers services to improve business
efficiencies of its current clients and prospective client bases. Sify also
offers services in the specialized domains of eLearning for-profit,
not-for-profit and government institutions both in India and globally. The
business also operates two of the most popular portals in India, Sify.com and
For more information about Sify, visit www.sifycorp.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of
Section27A of the Securities Act of 1933, as amended, and Section21E 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
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, 2012, 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.
Sify Technologies Limited
Mr. Praveen Krishna
Investor Relations & Corporate Communications
+91 44 22540777 (extn.2055)
Grayling Investor Relations
Ms. Trúc Nguyen (ext. 418)
Mr. Christopher Chu (ext. 426)
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