Sify reports revenues of INR 2698 million for Q3 of FY 2013-14
EBITDA for the quarter stood at INR 413 million
MILPITAS, CALIF., Jan. 21, 2014 (GLOBE NEWSWIRE) -- Sify Technologies Limited
(NASDAQ: SIFY), headquartered at Chennai, India, a leader in Managed
Enterprise, Network, IT and Software services in India with global delivery
capabilities, today announcedits consolidated results under International
Financial Reporting Standards (IFRS) for the third quarter of fiscal year
*Revenue for the quarter ended Dec 31, 2013 was INR 2698 million, an
increase of 21% over the same quarter last year.
*EBITDA for the quarter was INR 413 million, an increase of over 100% over
the same quarter last year.
*Net Profit for the quarter was INR 63 million as against a net loss of INR
56 million for the same quarter last year.
*CAPEX during the quarter was INR 400 million. Cash balance at the end of
the quarter was INR 1304 million.
Mr. Raju Vegesna, Chairman and Managing Director, said, "Customers continue to
appreciate our maturing portfolio of services and the expertise of our
technical team, demonstrated through consistent renewal and expansion of their
services with us. We have been able to grow consistently in spite of the
trying economic environment, and against stronger competition. This is an
endorsement of our strategy to move from being another service-provider to
becoming a partner-of-choice, and also reflects the trend of clients
consolidating their services with fewer service providers who can provide a
wider gamut of services.
We are seeing a trend of smaller enterprises willing to invest in new
technologies. In such a scenario, our flexible solutions portfolio and
accumulated knowledge base will be an asset as these companies seek to achieve
the best ROI in the quickest possible time."
Mr. Kamal Nath, CEO, said, "We are increasingly engaging ourselves with
clients around their Infrastructure transformation projects aimed towards
attaining agility, convergence and cost benefit. This is resulting in an
increasing number of multi-services and multi-year contracts for us.
We have a larger footprint of the Data Centre space now. Above it, we are
creating flexible, Opex based service models in various towers of Data Centre
infrastructure clubbed with our Cloud services. This provides the client a
wider choice while choosing Sify as their Data Centre partner. With this, we
are able to position ourselves better as Data Centre transformation partners,
particularly with small and medium enterprise clients."
Mr. M P Vijay Kumar, CFO, said, "Our practise of investing in infrastructure
which is tightly-linked to demand has helped us monetise our infrastructure
assets on hand, with asset utilization on an improving trend over the past 3
That said, there are costs recognized this quarter associated with the
implementation of a large network integration project and the commissioning of
our new Data Center at Noida. Our focus is now on ensuring that these costs
start bearing results quickly.
Cash balance at the end of the quarter was INR 1304 million."
ended Quarter ended Quarter ended
Cost of Revenues (1,620)
Selling, General and Administrative Expenses (665)
Depreciation and Amortisation expense (325)
Net Finance Expenses (52)
Other Income 27
Profit / (loss) Before tax63
Income Taxes -
Profit / (loss) for the period63
Reconciliation with Non-GAAP measure
Profit / (loss) for the period 63
Depreciation and Amortisation expense325
Net Finance Expenses 52
Other Income (27)
*Telecom business grew by 96% over same quarter last year.
*The business has retained one of its most loyal customers for a further
period of 7 years. This new contract comprises a significant enlargement
of the scope, with network expansion, higher SLA's, implementation of WAN
optimisation and a comprehensive security management framework.
*We have also won a large contract to rollout a MPLS network to support the
smart-grid initiatives of a state wide power distribution company. This is
the fourth such win in this segment in the last 12 months.
*A long term engagement with one of India's leading mobility service
providers for their traffic from India to Europe and further, will help us
monetise our cable landing station.
*International Voice showed marginal growth in the face of falling industry
Data Center Services
*All our existing four DCs are running at close to 100% capacity.
*The business added a new 'Green' facility at Noida, Delhi certified by The
*This new facility at Noida has already secured a contract from a leading
English daily and an emerging nationalised bank.
*We have also won significant contracts for renewals from the banking,
telecom and NBFC sectors.
*In a significant endorsement, SAP certified Sify as Hosting Services
*The Noida DC also won a major industry acknowledgment for infrastructure
Design and Build.
Cloud and Managed Services
*This business has picked up a number of substantial orders in this
*One of the largest Online Payment players in India has signed on to
utilise our services.
*This quarter, we have made a successful inroad into the gaming industry
*We have acquired a Cloud Services contract from one of the world's largest
*We have also signed a partnership with a world leader in Content delivery
to provide Content and Security Services on our Cloud platform.
*A single large multi-year application development and maintenance contract
from a State government department contributed to a substantial growth
*Additionally, the business also added a large e-procurement system
implementation contract outside of India.
*One of India's leading battery manufacturer has signed up for Sify's
Dealer Management System.
*The eLearning business forayed into the Consulting space with a
significant contract from a World body and another for game based content
from an auto major.
Technology Integration Services
*The Technology Integration business grew by 13% over the same quarter last
*The business won large orders from a State government department, two
banking majors, a defence establishment and one of India's largest
*Other wins were a Government of India petro-chemical refinery, a leading
mobile value addition player and another for building of Data Center for a
private IT education player.
*The business has signed up major partnerships with a global leaders in
performance optimisation and storage space to promote their solutions.
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 telecom data network infrastructure reaching more than
1200 cities and towns in India. This telecom network today connects 36 Data
Centres across India, including Sify's 5 Tier III Data Centres across the
cities of Chennai, Mumbai, Delhi and Bengaluru.
A significant part 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, 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 ISO / IEC 20000 -
1:2011 and ISO/IEC 27001:2005 certified for Internet Data Center operations.
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
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. The software team 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.
A graph accompanying this release is available at
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
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.
CONTACT: For further information, please contact:
Sify Technologies Limited
Mr. Praveen Krishna
Investor Relations & Public Relations
+91 44 22540777 (ext.2055)
Grayling Investor Relations
Ms. Truc Nguyen (ext. 418)
Mr. Christopher Chu (ext. 426)
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