Sify Reports Revenues of INR 2505 Million for Q2 of FY 2013-14
EBITDA for the quarter stood at INR 424 million
CHENNAI, India -- October 23, 2013
Sify Technologies Limited (NASDAQ Global Markets: SIFY), a leader in Managed
Network, IT and Application services in India with growing global delivery
capabilities, today announced its consolidated results under International
Financial Reporting Standards (IFRS) for the second quarter of fiscal year
*Revenue for the quarter ended Sep 30, 2013 was INR 2505 million, an
increase of 22% over same quarter last year.
*EBITDA for the quarter was INR 424 million, an increase of 180% over the
same quarter last year.
*Net Profit for the quarter was INR 111 million as against a net loss of
INR 57 million for the same quarter previous year, excluding a one-time
gain of INR 658 million from sale of associate as reported earlier.
*CAPEX during the quarter was INR 700 million. Cash balance at the end of
the quarter was INR 1614 million.
Mr. Raju Vegesna, Chairman and Managing Director, said, “In spite of a
challenging external environment across most sectors in India, we are
continuing to see good traction for our solutions offerings. While these tight
fiscal conditions have naturally resulted in some delays in customer decisions
on major projects, we are also seeing that clients are consolidating their
services with established service providers. As a well-entrenched player
across the entire ICT ecosystem, we are better able to expand our
share-of-wallet by leveraging our broad portfolio to provide cost-effective
“The other trend that we are seeing in this market is that emerging
enterprises are beginning to adopt IT in a large way. Our wide bouquet of
services, and our ability to scale and implement them quickly, translates into
greater value for our customers.
“Our investments in capacity building will be in time with market demands.
That way, we are able to monetize our investments better and still respond to
increased customer demands resulting from consolidation.”
Mr. Kamal Nath, CEO, said, “Our entire focus revolves around bringing the
client into the Sify environment. Given our capabilities across the entire ICT
eco-system, clients are able to fully leverage the benefit of choosing
multiple services from us, thus lowering their TCO and also giving us a larger
wallet share of their IT spends.
“Our investment in building new DC capacity at both Noida and Mumbai is
attracting strong interest from major customers seeking consolidation of
services. The services business is beginning to see growth, in particular the
Cloud and Managed services.”
Mr. M P Vijay Kumar, CFO, said, “We have seen a consistent upward trend in
both revenue and profitability. Apart from the increased sales of our services
portfolio, the other major reason for our improved performance has been our
continued strict adherence to financial discipline. Our focus will be in
increasing revenue with existing clients through more services, while
negotiating mutually beneficial economic terms with new clients. Our
investment in infrastructure continues to be demand-driven.
“Cash balance at the end of the quarter was INR 1614 million.”
Unaudited Consolidated income statement as per IFRS
(In INR millions)
Quarter Quarter Quarter
ended ended ended
Description September September June
2013 2012 2013
Revenue 2,505 2,059 2,628
Cost of Revenues (1,283 ) (1,125 ) (1,439 )
Selling, General and
Administrative (796 ) (782 ) (724 )
EBITDA 424 151 465
Depreciation and (251 ) (208 ) (261 )
Net Finance Expenses (71 ) (17 ) (53 )
Other Income 9 17 12
Profit from sale of
shares in affiliate - 658 -
and rights therein
Profit / (loss) 111 601 163
Income Taxes - - -
Profit / (loss) for 111 601 163
Profit / (loss) for 111 601 163
Depreciation and 251 208 261
Net Finance Expenses 71 17 53
Other Income (9 ) (17 ) (12 )
Profit from sale of
shares in affiliate - (658 ) -
and rights therein
EBITDA 424 152 466
*Telecom services grew by 35% over same quarter last year.
*Data Services grew by 34 % over same quarter last year.
*A global company in the aviation technology space awarded Sify a large
network integration contract covering all key airports in India.
*A large Public Sector Bank awarded Sify a contract for supporting its
online banking site.
*Sify launched enhanced DDoS detection and mitigation service for its
customers, enabling customers with large internet-facing businesses to
protect and secure their business from DDoS attacks.
Data Center business
*The new DC at Noida is seeing a lot of traction. Work on the new DC at
Mumbai is being accelerated to expand capacity.
*Renewals came from across all industries including a logistics major, a
state government electricity board, a telecom multi-national and the
largest banking conglomerate in India.
*New business included one of India’s leading English-language
publications, a home-grown banking major, and one of the oldest Indian
companies in the mobile power business.
Cloud and Managed services
*Cloud and Managed Services grew by 46% over same quarter last year.
*The business signed up a premier education institution and a food
*One of the world’s most popular fast food chains in India has opted for
our Cloud Platform to run their critical IT Servers.
*A leading Chemical multinational has opted for our Disaster recovery
services to provide business continuity.
*One of India’s largest private bank has signed us to run its critical
cheque truncation system for both its Datacentre & Far site DR.
*One of the largest Core banking Independent Software Vendors has chosen
Sify Cloud platform to run its Core Banking Solutions for its cooperative
*Talent Management Solutions registered an increase of 192% over same
quarter last year.
*Portals grew 45% over same quarter last year. As per Comscore, Sify unique
visitors grew by 85%, against a category growth of 6%.
*Sify Finance was among the top 5 portals in Business Finance News /
Research category, having a visitor YoY growth of approx 352%.
*Sify eLearning signed up two of the world’s largest pharmaceutical giants,
an international auditing major and a United Nations body.
Technology Integration services
*Technology Integration Business grew by 69% over previous quarter.
*Safescrypt grew by 87% over previous quarter.
*Sify was contracted to build a Data Center for a Defence establishment and
a health care major.
*A government statistical research institute contracted Sify to build and
maintain its MPLS network.
About Sify Technologies
Sify is among the largest integrated ICT Solutions and Services companies in
India, offering end-to-end solutions with a comprehensive range of products
delivered over a common data network infrastructure reaching more than 1100
cities and towns in India. This telecom network today connects 30 client Data
Centers across India, in addition to Sify’s own 5 Tier III Data Centres across
the cities of Chennai, Mumbai, Delhi and Bengaluru.
Most of the company’s revenue is derived from Enterprise Services, comprised
of Telecom services, Data Center services, Cloud and Managed services,
Application services and Telecom Integration services. Sify also provides
services that cater to the burgeoning demands of the SMB/SOHO community and
the retail consumer, much of it on its Cloud services platform.
Sify is ISO 9001:2008 certified for Enterprise Sales, Provisioning, support
and customer relationship management of ICT solutions and services including
VPN, Network, Voice, Data Centre hosting, Integration services, security
services and managed services. Sify has been certified in SSAE16 SOC2 Type II
for Cloud Infrastructure. Sify has licenses to operate NLD (National Long
Distance) and ILD (International Long Distance) services and offers VoIP
backhaul for international carriers. With the Sify Cable landing station and
partnerships with submarine 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 India’s first enterprise managed services provider to
launch a Security Operations Center (SOC)to deliver managed security
services. Sify Software develops applications and offers services to improve
business efficiencies of its current and prospective client bases. Sify also
offers services in the specialized domains of eLearning, both in India and
globally. The business also operates two of the most popular internet portals
in India, Sify.com and Samachar.com.
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, 2013, 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 (ext. 2055)
Grayling Investor Relations
Ms. Trúc Nguyen (ext. 418)
Mr. Christopher Chu (ext. 426)
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