Sify reports Consolidated Financial Results for Q3 FY 2024-25
Sify Technologies reported Q3 FY 2024-25 financial results with revenues of INR 10,491 Million, marking a 21% increase year-over-year. The company's EBITDA reached INR 1,914 Million, up 13% compared to the same quarter last year. However, Sify recorded a loss before tax of INR 119 Million and a loss after tax of INR 258 Million.
Capital expenditure during the quarter amounted to INR 3,343 Million. Management highlighted India's growing prominence in the global marketplace, citing liberal policies, supportive business environment, and skilled resources as key drivers. The company acknowledged that current results were impacted by depreciation, interest payments, and rising manpower costs.
Sify Technologies ha riportato i risultati finanziari del terzo trimestre dell'anno fiscale 2024-25, con ricavi di INR 10.491 milioni, segnando un aumento del 21% rispetto all'anno precedente. L'EBITDA dell'azienda ha raggiunto INR 1.914 milioni, in crescita del 13% rispetto allo stesso trimestre dell'anno scorso. Tuttavia, Sify ha registrato una perdita prima delle tasse di INR 119 milioni e una perdita dopo le tasse di INR 258 milioni.
La spesa in conto capitale durante il trimestre è stata di INR 3.343 milioni. La direzione ha evidenziato la crescente importanza dell'India nel mercato globale, citando politiche liberali, un ambiente imprenditoriale favorevole e risorse qualificate come fattori chiave. L'azienda ha riconosciuto che i risultati attuali sono stati influenzati dall'ammortamento, dai pagamenti di interessi e dall'aumento dei costi del personale.
Sify Technologies informó los resultados financieros del tercer trimestre del año fiscal 2024-25, con ingresos de INR 10.491 millones, lo que marca un aumento del 21% en comparación con el año anterior. El EBITDA de la empresa alcanzó INR 1.914 millones, un 13% más en comparación con el mismo trimestre del año pasado. Sin embargo, Sify registró una pérdida antes de impuestos de INR 119 millones y una pérdida después de impuestos de INR 258 millones.
Los gastos de capital durante el trimestre ascendieron a INR 3.343 millones. La dirección destacó la creciente prominencia de la India en el mercado global, citando políticas liberales, un entorno empresarial favorable y recursos calificados como los motores clave. La empresa reconoció que los resultados actuales fueron afectados por la depreciación, los pagos de intereses y el aumento de los costos de mano de obra.
Sify Technologies는 2024-25 회계연도 3분기 재무 결과를 보고하며 인도 루피 10,491억의 수익을 기록하였고, 이는 작년 대비 21% 증가한 수치입니다. 회사의 EBITDA는 인도 루피 1,914억에 도달했으며, 이는 작년 같은 분기 대비 13% 증가한 것입니다. 그러나 Sify는 세전 손실이 인도 루피 119억, 세후 손실이 인도 루피 258억으로 나타났습니다.
이번 분기의 자본 지출은 인도 루피 3,343억에 달했습니다. 경영진은 인도의 글로벌 시장에서의 중요성이 점점 커지고 있음을 강조하며, 자유로운 정책, 지원적인 비즈니스 환경, 숙련된 자원을 주요 요인으로 언급했습니다. 회사는 현재의 결과가 감가상각, 이자 지급, 인건비 상승의 영향을 받았다고 인정했습니다.
Sify Technologies a rapporté les résultats financiers du troisième trimestre de l'exercice 2024-25, avec des revenus de INR 10.491 millions, marquant une augmentation de 21 % par rapport à l'année précédente. L'EBITDA de l'entreprise a atteint INR 1.914 millions, en hausse de 13 % par rapport au même trimestre de l'année dernière. Cependant, Sify a enregistré une perte avant impôts de INR 119 millions et une perte après impôts de INR 258 millions.
Les investissements en capital au cours du trimestre se sont élevés à INR 3.343 millions. La direction a souligné l'importance croissante de l'Inde sur le marché mondial, citant des politiques libérales, un environnement commercial favorable et des ressources qualifiées comme moteurs clés. L'entreprise a reconnu que les résultats actuels ont été affectés par l'amortissement, les paiements d'intérêts et l'augmentation des coûts de main-d'œuvre.
Sify Technologies berichtete über die finanziellen Ergebnisse des dritten Quartals des Geschäftsjahres 2024-25 mit Einnahmen von INR 10.491 Millionen, was einem Anstieg von 21 % im Vergleich zum Vorjahr entspricht. Das EBITDA des Unternehmens erreichte INR 1.914 Millionen, was einem Anstieg von 13 % im Vergleich zum gleichen Quartal des letzten Jahres entspricht. Allerdings verzeichnete Sify einen Verlust vor Steuern von INR 119 Millionen und einen Verlust nach Steuern von INR 258 Millionen.
Die Investitionsausgaben im Quartal beliefen sich auf INR 3.343 Millionen. Das Management hob die zunehmende Bedeutung Indiens auf dem globalen Markt hervor und nannte liberale Politiken, ein unterstützendes Geschäftsumfeld und qualifizierte Ressourcen als wesentliche Treiber. Das Unternehmen räumte ein, dass die aktuellen Ergebnisse durch Abschreibungen, Zinszahlungen und steigende Personalkosten beeinflusst wurden.
- Revenue increased 21% YoY to INR 10,491 Million
- EBITDA grew 13% YoY to INR 1,914 Million
- Reported loss after tax of INR 258 Million
- Loss before tax of INR 119 Million
- Increasing costs from depreciation, interest payments, and manpower
Insights
Sify's Q3 FY2024-25 results present a mixed financial picture. Revenue grew by
The
For retail investors, the key concern is the sustainability of this high-CAPEX, negative-earnings model. While infrastructure investments could position Sify for future growth in India's expanding digital economy, the immediate financial strain is evident. The company's strategy appears to prioritize market position over short-term profitability, a risky approach given its relatively small market cap of
India's positioning as an emerging AI testbed represents a strategic pivot from its traditional role as a global IT services provider. This evolution aligns with Sify's aggressive infrastructure investments, targeting the anticipated surge in data center and network requirements for AI operations. The company's capital allocation strategy, while creating short-term pressure, appears calibrated to capture this emerging opportunity.
The broader market context is important - India's improving business environment and policy framework are attracting international technology companies, potentially expanding Sify's addressable market. However, competition in this space is intensifying, with both domestic and international players making similar infrastructure investments. Sify's relatively smaller scale could be a disadvantage in this capital-intensive market.
The company's current financial strain reflects the classic growth-versus-profitability dilemma in emerging technology markets. While the strategic rationale is sound, execution risks are heightened by rising costs and competitive pressures. Investors should monitor the timeline to profitability and market share gains to evaluate the success of this investment-heavy strategy.
Revenues of INR 10,491 Million. EBITDA of INR 1,914 Million.
Loss for the period INR 258 Million.
CHENNAI, India, Jan. 17, 2025 (GLOBE NEWSWIRE) --
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On the call: Mr. Raju Vegesna, Chairman of the Board and Mr. M P Vijay Kumar, Executive Director & Group CFO
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HIGHLIGHTS
- Revenue was INR 10,491 Million, an increase of
21% over the same quarter last year. - EBITDA was INR 1,914 Million, an increase of
13% over the same quarter last year. - Loss before tax was INR 119 Million. Loss after tax was INR 258 Million.
- CAPEX during the quarter was INR 3,343 Million.
MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman, said, “India's growing prominence in the global marketplace is driven by its liberal policies, a supportive business environment, and a wealth of skilled resources. These factors combine to create a compelling growth opportunity for international companies, making India a critical destination in their global strategic expansion plans.
India has long established a reputation of being an IT service provider for the world. That narrative is now maturing to recognize that India can be an important AI test-bed for the emerging digital economy. Multiple global leaders have also gone on record regarding the importance of the Indian market in their investment roadmap.”
Mr. M P Vijay Kumar, ED & Group CFO, said, “We stay focussed on cost efficiency and fiscal discipline, ensuring our financial strategies align with long-term value creation. Our current results are weighed down by depreciation, interest payments and escalating manpower costs.
Our strategic investments are guided by a forward-looking approach, designed to anticipate evolving market dynamics and drive sustainable growth. Our pursuit of responsible and innovative growth will be strengthened through such sustainable practices.
We draw your attention to Sify adopting the new standard of International Accounting Standards Board’s recent issuance of IFRS 18 (Presentation and Disclosure in Financial Statements), starting with the last quarter ending June 30, 2024. By adopting the new standard, we seek to maintain clarity and consistency in our financial communications. Importantly, while our presentation may change, there is no alteration in total income or net profit. December 2023 numbers are restated consequent to filing of Amended Form 20-F/A with SEC on January 13, 2025.
The cash balance at the end of the quarter was INR 5,327 Million”.
BUSINESS HIGHLIGHTS
- The Revenue split between the businesses for the quarter was Data Center colocation services
36% , Digital services23% and Network services41% . - During the quarter, Sify commissioned 5MW of additional Data Center capacity.
- As of December 31,2024, Sify provides services via 1109 fiber nodes across the country, a
14% increase over same quarter last year. - As of December 31, 2024, Sify has deployed 9473 contracted SDWAN service points across the country.
CUSTOMER ENGAGEMENTS
Among the most prominent new contracts during the quarter were the following:
Data Center Services
- A web hosting company and an ecommerce IT peripherals player migrated from the competition’s data center to Sify Data Center.
- One of the largest private and public sector banks contracted to expand their DR at two Sify’s premises.
- The Central Bank’s arm for payments and settlement contracted for a DR location and a private bank contracted for an Near DR.
Digital services
- An industrial construction major and a mobility solutions provider contracted to migrate their on-prem DC to Sify’s Cloud platform.
- One of the oldest publishing houses, a retail automation player, a home grown diversified MNC and inland waterway channel contracted Sify to build greenfield cloud platforms.
- A majority of these entities also signed up for value added services, such as services like DRaaS, PaaS and IaaS.
- A publicly listed state technology mission signed up for on-prem commissioning of private cloud services.
- New contracts for Managed services included the IT mission of a state government, a public sector bank and a national insurance player.
- The technology partner to the Government of India, multiple banks and a heavy machinery supply chain major signed up for on-prem Security build services.
- A Public sector bank, the technology partner to the Government of India, an insurance major, a fintech major and the IT mission of a state government signed up for technology refresh.
- Sify delivered more than 2 million online assessments this quarter.
- A homegrown MNC’s international hospitality division contracted for supply chain integration.
Network Services
- A global banking major with presence in India and a retail MNC signed up for Sify’s Global Cloud interconnection.
- One of the largest Investment banks and a global FMCG contracted for Sify's Cloud interconnect Solutions.
- A global investment bank and the country’s premier financial transaction settlement assurance platform transitioned their networks to Sify.
- A state government’s police service signed up for Wide Area Networking.
- Sify landed a second intercontinental cable system at its Open Cable landing station.
- Sify has also commenced services on the Mumbai – Noida National Long Distance (NLD) network.
FINANCIAL HIGHLIGHTS
Unaudited Consolidated Income Statement as per IFRS | ||||||
(In INR millions) | ||||||
Description | Quarter ended | Quarter ended | Quarter ended | |||
December 2024 | December 2023 | September 2024 | ||||
(restated) | ||||||
Revenue | 10,491 | 8,659 | 10,275 | |||
Cost of Sales | (6,725 | ) | (5,390 | ) | (6,362 | ) |
Gross Profit | 3,766 | 3,269 | 3,913 | |||
Other Operating Income | 64 | (17 | ) | 135 | ||
Selling, General and Administrative Expenses | (1,845 | ) | (1,579 | ) | (1,945 | ) |
Depreciation and Amortisation expense | (1,446 | ) | (1,183 | ) | (1,323 | ) |
Operating Profit | 539 | 490 | 780 | |||
Investment Income | 52 | 101 | 2 | |||
Profit before financing and income taxes | 591 | 591 | 782 | |||
Finance income | 19 | - | - | |||
Interest expenses on borrowings and lease liabilities | (729 | ) | (558 | ) | (641 | ) |
Interest expenses on pension liabilities | - | (1 | ) | (1 | ) | |
Profit/(Loss) before income taxes | (119 | ) | 32 | 140 | ||
Income Tax Expense | (139 | ) | 6 | (38 | ) | |
Profit/(Loss) for the period | (258 | ) | 38 | 102 | ||
Profit attributable to: | ||||||
Reconciliation with Non-GAAP measure | ||||||
Profit/(Loss) for the period | (258 | ) | 38 | 102 | ||
Add: | ||||||
Depreciation and Amortisation expense | 1,446 | 1,183 | 1,323 | |||
Net Finance Expenses | 636 | 473 | 534 | |||
Current Tax | 190 | 9 | 184 | |||
Less: | ||||||
Deferred Tax | (51 | ) | (15 | ) | (146 | ) |
Other Income (including exchange gain/loss) | (49 | ) | 1 | (34 | ) | |
EBITDA | 1,914 | 1,689 | 1,963 | |||
Management-defined Performance Measures (MPMs)
Sify uses Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) as the management-defined performance measure in its public communications. This measure is not specified by IFRS Accounting Standards and therefore might not be comparable to apparently similar measures used by other entities.
Management believes adjusting operating profit for these items provides comprehensive information of the company’s operating performance.
Reconciliation with Management-defined Performance Measures:
(In INR millions)
Description | Quarter ended | Quarter ended | Quarter ended | |||
December 2024 | December 2023 | September 2024 | ||||
(restated) | ||||||
Operating Profit | 539 | 490 | 780 | |||
Add: | ||||||
Depreciation and Amortisation expense | 1,446 | 1,183 | 1,323 | |||
Less: | ||||||
Interest expenses on pension liabilities | - | (1 | ) | (1 | ) | |
Other Income (including exchange gain/loss) | (71 | ) | 17 | (139 | ) | |
EBITDA | 1,914 | 1,689 | 1,963 | |||
Segment Reporting:
(In INR millions)
Particulars | Q3 2024-25 | Q3 2023-24 (restated) | ||||||||||||||
Network Services (A) | Data center Services (B) | Digital Services (C) | Total (D=A+B+C) | Network Services (A) | Data center Services (B) | Digital Services (C) | Total (D=A+B+C) | |||||||||
Revenue | ||||||||||||||||
External customers Revenue | 4,274 | 3,837 | 2,380 | 10,491 | 3,477 | 2,732 | 2,450 | 8,659 | ||||||||
Intersegment Revenue | - | 22 | 55 | 77 | - | 22 | 55 | 77 | ||||||||
Operating expenses | (3,823 | ) | (2,119 | ) | (2,655 | ) | (8,597 | ) | (2,985 | ) | (1,584 | ) | (2,410 | ) | (6,979 | ) |
Intersegment expenses | (63 | ) | - | (14 | ) | (77 | ) | (63 | ) | - | (14 | ) | (77 | ) | ||
Segment Result | 388 | 1,740 | (234 | ) | 1,894 | 429 | 1,170 | 81 | 1,680 | |||||||
Unallocated Expense (Support Service Unit Costs) | 27 | 10 | ||||||||||||||
Depreciation & Amortisation | (1,446 | ) | (1,183 | ) | ||||||||||||
Other income / (expense), net | 116 | 84 | ||||||||||||||
Finance Income | 19 | - | ||||||||||||||
Finance Expense | (729 | ) | (559 | ) | ||||||||||||
Profit / (loss) before tax | (119 | ) | 32 | |||||||||||||
Income taxes (expense)/ benefit | (139 | ) | 6 | |||||||||||||
Profit / (loss) for the period | (258 | ) | 38 | |||||||||||||
Equity and Debt:
(In INR millions)
31.12.2024 | 31.12.2023 | 30.09.2024 | |
EQUITY | 17,391 | 15,261 | 17,627 |
BORROWINGS | |||
Long term | 26,306 | 20,386 | 26,905 |
Short term | 7,326 | 6,334 | 7,719 |
About Sify Technologies
A multiple times award winner of the Golden Peacock from Institute of Directors for Corporate Governance, Sify Technologies is India’s most comprehensive ICT service & solution provider. With Cloud at the core of our solutions portfolio, Sify is focussed on the changing ICT requirements of the emerging Digital economy and the resultant demands from large, mid and small-sized businesses.
Sify’s infrastructure comprising state-of-the-art Data Centers, the largest MPLS network, partnership with global technology majors and deep expertise in business transformation solutions modelled on the cloud, make it the first choice of start-ups, SMEs and even large Enterprises on the verge of a revamp.
More than 10000 businesses across multiple verticals have taken advantage of our unassailable trinity of Data Centers, Networks and Digital services and conduct their business seamlessly from more than 1700 cities in India. Internationally, Sify has presence across North America, the United Kingdom and Singapore. Sify, www.sify.com, Sify Technologies and www.sifytechnologies.com are registered trademarks of Sify Technologies Limited.
Non-IFRS Measures
This press release contains a financial measure not prepared in accordance with IFRS. In particular, EBITDA is referred to as “non-IFRS” measure. The non-IFRS financial measure we use may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies - refer to the reconciliation provided in the table labelled Financial Highlights for more information. In addition, these non-IFRS measures should not be considered in isolation as a substitute for, or as superior to, financial measures calculated in accordance with IFRS, and our financial results calculated in accordance with IFRS and reconciliation to those financial statements should be carefully evaluated.
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/A for the year ended March 31, 2024, 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.
For further information, please contact:
Sify Technologies Limited Mr. Praveen Krishna Investor Relations & Public Relations +91 9840926523 praveen.krishna@sifycorp.com | 20:20 Media Nikhila Kesavan +91 9840124036 nikhila.kesavan@2020msl.com | Weber Shandwick Lucia Domville +1-212 546-8260 LDomville@webershandwick.com |
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