Q2 results: Sify reports 14 percent rise in revenues at Rs 7,938 mn, EBITDA of Rs 1,509 mn

Sify Technologies on Friday saw revenue grow 14 percent to Rs 7,938 million for the quarter ended September 2022 when compared to the same period last year. The company’s Ebitda increased by 2 percent to Rs 1,509 million. Profit before tax was Rs 220 million, a decrease of 52 percent over the same quarter last year.

Profit after tax was Rs 112 million, a decrease of 69 percent over the same quarter last year. Capex during the quarter was Rs 2,234 million and cash balance at end of quarter was Rs 2,775 million.

• EBITDA was Rs 1509 Million, an increase of 2% over the same quarter last year.
• Profit before tax was Rs 220 Million, a decrease of 52% over the same quarter last year.
• Profit after tax was Rs 112 Million, a decrease of 69% over the same quarter last year.
• CAPEX during the quarter was Rs 2234 Million.

Raju Vegesna, Chairman, said, “India has displayed remarkable insulation against the global recession sentiments. This is due to the country’s strong fiscal fundamentals and its attractiveness as a safe investment geography. The Government has ensured that the economic agenda stays the course and digital ambitions begin to deliver the intended social welfare gains.

The influx of MNCs is bringing both opportunities and technologies to our shores. Domestic Enterprises and Start-ups are banking on this positive sentiment to accelerate their Digital transformation journey. The future is full of promises and possibilities”.

Kamal Nath, CEO, said, “Indian Enterprises have fast-tracked their digital initiatives based on their success navigating the pandemic and are now operationalizing pandemic-era innovations. Enterprise priorities are building businesses-aligned digital models, enhancing end user experience, deploying resilient business continuity models and mitigating security risks.

Our Data Center and Cloud services, Digital and Network services are all important building blocks to enable customers’ business priorities, and we expect each of the businesses to grow with the related investments”.

MP Vijay Kumar, CFO, said, “We are leveraging demand to aggressively build capacity across our Data Centers. Investment into Network and tools will be in accordance with this demand, without losing sight of fiscal discipline.

With increase in capacity utilization, we should see our digital services find demand and further contribute to the revenue mix.

BUSINESS HIGHLIGHTS 

• The Revenue split between the businesses for the quarter was Data Center colocation services 32%, Digital services 25% and Network services 43%.

CUSTOMER ENGAGEMENTS

Among the most prominent new contracts during the quarter were the following:

Data Center Services

• International players who signed up for Data Center space include a social media network, a credit rating agency and a cloud security company.
• Migration from the competition to Sify DC included a nationalized bank and the government’s rural development authority.
• The country’s premier hotel chain, a mobile engagement platform, a supply chain major and a regional broadband service provider contracted to migrate from their on-premise DC to Sify DC.

Digital services

• Industry majors from Insurance, IT, Healthcare, retail and NBFC contracted to migrate from on-premise DC to our Cloud platform.
• A cloud-based payroll processing player and a NBFC contracted for Greenfield cloud projects.
• An Indian conglomerate signed up to build a Campus network and managed services.
• A large Public Sector bank, a state government body, a private insurance major and a domestic agrochemical manufacturer renewed their managed services contract.
• A national insurance information body, a private insurance player and an NBFC signed up for DC and Infra managed services.
• Two state governments, a couple of insurance majors, a pan-India retail player, a software start-up and the cyber wing of a state government contracted for services such as DRaaS, PaaS and IaaS.
• A large private bank contracted to expand their Data Center.
• A State cooperative bank contracted for security infrastructure and managed services.

Network Services

• An international Cloud security company, a global technology company and two Private banks contracted to have their networks built.
• A large Public insurance company, an edutech unicorn and the housing division of a Public sector insurance player contracted for managed and secure SDWAN service.
• One of the largest Private banks contracted for Cloud connectivity network.
• A subsidiary of the Central bank responsible for payment infrastructure contracted to expand their WiFi footprint across their location.
• A global consulting major and a cooperative bank contracted for collaboration services.
• The business rolled out trials of its fully automated self-service portal, allowing customers to provision network-on-demand for more than 200 locations.
• Sify received the gateway license for Kolkata, making it the third international gateway.