Sify reports revenues of INR 3160 million for Q2 of FY 2014-15

Sify-logoChennai, India, October 17, 2014: Sify Technologies Limited, a player in Managed Enterprise, Network, IT and Software services in India with global delivery capabilities, today announced its consolidated results under International Financial Reporting Standards (IFRS) for the second quarter of fiscal year 2014-15.

PERFORMANCE HIGHLIGHTS:

• Revenue for the quarter ended September 30, 2014 was INR 3160 million, an increase of 26% over the same quarter last year.
• EBITDA for the quarter was INR 456 million, an increase of 8% over the same quarter last year.
• Net Profit for the quarter was INR 90 million, down 15% versus the same quarter last year.
• CAPEX during the quarter was INR 785 million. Cash balance at the end of the quarter was INR 1505 million.

Raju Vegesna, Chairman and Managing Director, said, “In August 2014, we were awarded the Golden Peacock award for Business Excellence; an endorsement of our management practices. Corporate Governance, Business Excellence and Industry best practices. Coming in the 15th year of our listing on NASDAQ, it is a recognition of the transparency with which we have conducted ourselves. The experience and credibility gained on the recent network integration project completed for India’s Department of Posts has helped us to become a regular contender for large-scale IT refresh projects. It is encouraging that clients are now seeing us as knowledge partners and engaging us at the planning stage. In an environment that is just recovering from recession, that should help us give a head start in future business.”

Kamal Nath, CEO, said, “We have seen significant traction among customers for our Data Centre Transformation services. With the new government firmly in place, we are also seeing quicker decision making among the Government and PSUs.
Our order books reflect deeper engagements. The composition of our major client projects is also changing, with multiple services, longer tenures and earlier engagement, long before the change is due. This reflects positively on our efforts to promote our knowledge practices and our ability to service different size customers.”

M P Vijay Kumar, CFO, said, “While we are seeing consistent revenue growth, there has also been an increase in our expenditures, which has created some pressure on our Net Profit. Much of this increase is due to depreciation associated with our newly opened Data Centers, along with some implementation cost incurred during the final stages of a large network integration project. The network integration project is nearing completion, and we are working through the acceptance process, following which the associated revenues can be recognized. Our new state-of-the-art Data Centers will have an initial gestation period before the strong customer interest we are seeing translates into annuity revenues. Cash balance at the end of the quarter was INR 1505 million.”

Business Highlights

Telecom                      

  • The Telecom business has increased orders by 26% over the previous quarter.
  • The business has added three banks, one among them India’s oldest PSU.
  • Another key win is a large franchised chain of American fast food restaurants.
  • Customers with links under management reaching 10% of the total base.

DC Services

  • This business has shown 31% growth in orders over the previous quarter.
  • One of India’s major tobacco manufacturer and distributor and a group company of a larger conglomerate signed up for hosting services.
  • The business also won an order from a leading multi-national life insurance company and a premier Railway Urban Co-operative Bank.

TIS

  • This business showed the highest order growth; more than 400% over previous quarter.
  • Four key State government Electricity Boards contracted for a large scale refresh of their distribution networks.
  • Two nationalised banks contracted for specific network services.
  • An Asian engineering major selected us to set up the Network for one of their clients in the energy sector.
  • The business signed a major voice collaboration deal with an IT major to help migrate a client across network protocols.
  • The business was picked to supply key networking gear to a large Indian multinational.

Cloud and Managed Services

  • The tobacco major mentioned earlier also signed up for managed hosting services.
  • A state government promoted IT and Biotech society and an online portal for idea incubation were the other signees.

Applications Integration Services                                

  • This business has shown order growth of more than 42% over the previous quarter.
  • The business signed up the retail food initiative of an Indian group.
  • A recognized body of Indian banking personnel also signed up for our services.
  • One of India’s oldest business houses and a Government of India organisation in infrastructure have also contracted us for a select set of services.

© Technuter.com News Service

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