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TheStreet Open House

Sify Reports Revenues Of INR 2505 Million For Q2 Of FY 2013-14

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.”

FINANCIAL HIGHLIGHTS

Unaudited Consolidated income statement as per IFRS
(In INR millions)                              
Quarter ended         Quarter ended         Quarter 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 Expenses (796 ) (782 ) (724 )
                     
EBITDA 424           151           465  
 
Depreciation and Amortisation expense (251 ) (208 ) (261 )
 
Net Finance Expenses (71 ) (17 ) (53 )
 
Other Income 9 17 12
 

Profit from sale of shares in affiliate and rights therein

- 658 -
                     
Profit / (loss) Before tax 111           601           163  
 
Income Taxes - - -
                     
Profit / (loss) for the period 111           601           163  
 
 

Reconciliation with Non-GAAP measure

 
Profit / (loss) for the period 111 601 163
Add:
Depreciation and Amortisation expense 251 208 261
 
Net Finance Expenses 71 17 53
Less:
Other Income (9 ) (17 ) (12 )
 
Profit from sale of shares in affiliate and rights therein - (658 ) -
                     
EBITDA 424           152           466  
 

BUSINESS HIGHLIGHTS:

Telecom business

  • 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 multi-national.
  • 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 banks customers.

Applications services

  • 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.

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