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Sify Reports Revenues Of INR 2222 Million For Third Quarter Of Fiscal Year 2012-13

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 2012-13.

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.

FINANCIAL HIGHLIGHTS

             
Unaudited Consolidated income statement as per IFRS
(In INR millions)              
Description

Quarter ended December

Quarter ended December

Quarter ended 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 Expenses (737 ) (655 ) (782 )
             
EBITDA 206       135       153  
 
Depreciation and Amortisation expense (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 and rights therein - - 658
             
Profit / (loss) Before tax (56 )     (74 )     603  
 
Income Taxes - - -
             
Profit / (loss) for the period (56 )     (74 )     603  
 
 

Reconciliation with Non-GAAP measure

 
Profit / (loss) for the period (56 ) (74 ) 603
Add:
Depreciation and Amortisation expense 220 172 208
Net Finance Expenses 47 57 17
Less:
Other Income (5 ) (17 ) (17 )
Share of Affiliates - (3 ) -
Profit from sale of shares in affiliate and rights therein - - (658 )
             
EBITDA 206       135       153  
 
 

BUSINESS HIGHLIGHTS:

Network services

Our strategy of increasing market coverage through network expansion is yielding results.

  • Revenue of Network services has grown 10% over last quarter.
  • Data business continues to grow with a robust 17% growth over same quarter previous year.
  • 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 markets.
  • 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.

IT services

  • 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 Software Major.
  • 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 authority.
  • 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 Industry verticals.
  • 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 and Platform).

Software Services

This business now includes eLearning and portals

  • We had major wins in the Engineering, Media and Logistics industry for our EAS business.
  • 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 last year.
  • 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 Mobile Technology.
  • 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.

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