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 second quarter of fiscal year 2012-13. Performance Highlights Q2 FY 2012-13:
- Sify reported revenues of INR 2059 million for the quarter ended September 30, 2012 against revenues of INR 1815 million for the corresponding quarter of the previous year, a growth of 13%.
- EBITDA for the quarter increased to INR 161 million, as compared to INR 136 million in the corresponding quarter previous year.
- Net profit for the quarter was INR 612 million, as against a net loss of INR 89 million in the corresponding quarter previous year. This quarter includes a one time profit of approximately INR 658 million, realised on exit from our erstwhile affiliate, MF Global Sify Securities India Pvt Ltd. Without this item, the net loss for the quarter would have been INR 45 million.
- CAPEX during the quarter was INR 1338 million. Cash balance at the end of the quarter was INR 907 million.
|Unaudited Consolidated income statement as per IFRS|
|(In INR millions)|
|Description||Quarter ended||Quarter ended||Quarter ended|
|Cost of Revenues||(1,101||)||(1,060||)||(1,123||)|
|Selling, General and Administrative Expenses||(797||)||(619||)||(672||)|
|Depreciation and Amortisation expense||(208||)||(172||)||(197||)|
|Net Finance Expenses||(16||)||(72||)||(55||)|
|Share of Affiliates||-||19||-|
|Profit from sale of shares in affiliate and rights therein||658||-||-|
|Profit / (loss) Before tax||612||(89||)||(68||)|
|Profit / (loss) for the period||612||(89||)||(68||)|
|Profit attributable to:|
|Reconciliation with Non-GAAP measure|
|Profit / (loss) for the period||612||(89||)||(68||)|
|Depreciation and Amortisation expense||208||172||197|
|Net Finance Expenses||16||72||55|
|Share of Affiliates||-||(19||)||-|
|Profit from sale of shares in affiliate and rights therein||(658||)||-||-|
- Network services continue to see an increase in growth rate in its core data business.
- Revenue is up 17% over same quarter last year and 4% over last quarter. Key wins include a large PSU bank and retail chain.
- Our network now covers 970 cities Pan India with over 1795 base stations
- Our strategy of focusing on the SME/SMB market and Tier 2/3 cities has started yielding results. The business growth in this segment is a major component of the overall data revenue growth rate for the company.
- The business continues to report wins in the retail segment, a focus area for Sify. With the recent announcement in FDI in retail, we expect greater adoption of technology in this segment as local retail chains prepare to compete in a fast changing market.
- Overall, IT services have grown 16% over the same period last year.
- The hosting business has won major contracts from Indian software, telecom and banking majors. These are all multi year contracts ensuring a healthy revenue inflow. The new data centers being commissioned over the next 2 quarters will also help improve growth in this segment.
- We also won a large multi-year Network system Integration and Managed services contract from an Indian Insurance major.
- Our Cloud hosting platform chalked up multiple multi-year wins from Media, FMCG and Telecom companies. We are now accredited by two global cloud services majors for offering their tools on our platform, with one of them also recognising us as “Power of Choice Partner.”
- The newest stock exchange in the country opted for our Security services. Sify’s Safescrypt services continue to maintain its leadership position.
- In the first quarter, we launched a new business segment with alliance partners. We are happy to report that this business has taken off well with major contracts from Indian software majors.
- Overall, Software Services registered a growth of 22% over the prior quarter, led by Enterprise applications services, which grew over 40% with wins across a number of industries.
- In addition to a 6th consecutive win of the Brandon Hall award, Sify’s E-learning team also picked up the Asian Learning Leadership Award (Dubai) and Asia Pacific Learning and Development Award (India).
- Over the last 12 months, as per Comscore, http://www.sify.com/ grew by 34% Y on Y. New channels launched were Sify Skills and Sify Gold & Silver Line, along with an application for Facebook called “Sify Social Reader.”
A significant part of the company’s revenue is derived from Corporate Enterprise Services, which include Network and IT services, Connectivity, Security, Network management services, Enterprise applications, Hosting and Remote Infrastructure Management Services. A varied product portfolio at multiple price points allows Sify to also cater to the burgeoning demands of the SMB/SOHO community and the retail consumer, much of it on the cloud platform.Sify is a recognized ISO 9001:2008 certified service provider for network operations, data center operations and customer support, and for provisioning of VPNs, Internet bandwidth, VoIP solutions and integrated security solutions, and ISO / IEC 20000 - 1:2005 and ISO/IEC 27001:2005 certified for Internet Data Center operations. Sify has also built a credible reputation in the emerging Cloud Computing market and is today, regarded as a domain expert. Sify has licenses to operate NLD (National Long Distance) and ILD (International Long Distance) services and offers VoIP backhaul to long distance subscriber telephony services. With the Sify Cable landing station and the partnerships inked with several cable companies globally, Sify is present in almost all the spheres of the ICT eco system. The company has an expanding base of Managed Services customers, both in India and overseas, and is also India’s first enterprise managed services provider to launch a Security Operations Center (SOC) to deliver managed security services. Sify Software develops applications and offers services to improve business efficiencies of its current clients and prospective client bases. Sify also offers services in the specialized domains of eLearning for-profit, not-for-profit and government institutions both in India and globally. The business also operates two of the most popular portals in India, Sify.com and Samachar.com. For more information about Sify, visit www.sifycorp.com. 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 forward-looking statements.
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, 2012, 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.