Sify reports Revenues of INR 5259 Million for First Quarter of FY 2020-21
Sify Technologies reported a robust EBITDA of INR 1,153 million for the quarter ending June 2020, a notable increase from INR 874 million in the same quarter last year. Revenue decreased to INR 5,259 million from INR 5,518 million. Despite pandemic challenges, the company focused on liquidity and fiscal discipline, ending the quarter with a cash balance of INR 3,568 million. Management highlighted increased interest in their Cloud@core offerings as businesses adapt to new operational models. Key wins included significant contracts for data center migrations and cloud services.
- EBITDA increased to INR 1,153 million, up from INR 874 million YoY.
- Cash balance at the end of the quarter was INR 3,568 million.
- Growth in cloud adoption evidenced by multiple customer contracts for cloud migration.
- Strong demand for Sify’s digital services and network transformation capabilities.
- Revenue declined to INR 5,259 million from INR 5,518 million YoY.
- Ongoing pandemic may continue to challenge operational performance.
EBITDA for the Quarter stood at INR 1153 Million
SANTA CLARA, Calif., July 28, 2020 (GLOBE NEWSWIRE) --
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MANAGEMENT COMMENTARY
Mr. Raju Vegesna, Chairman, said, “As the world comes to terms with the new normal, it is becoming increasing clear that investment in business continuity and highly automated processes is no longer an option. During this period, we have benefited from our ongoing efforts to automate a majority of our Network, Data Center and service escalation processes. Our services, having stood the test of this pandemic, are now more relevant than ever in a rapidly evolving IT landscape.
True to our business promise, I would like to assure our clients that we will continue to extend all support in keeping them ahead.”
Mr. Kamal Nath, CEO, said, “Over the last quarter, we, along with our customers have learned to adapt to new modes of doing businesses. Our “Cloud@core” products and services are emerging as the most relevant to the altered ground realities.
Previously cloud hostile and cloud sceptical customers have opened up conversations about cloud adoption to de-risk their dependency on on-premise IT. Our cloud portfolio, together with our cloud adjacent Data Centers are the perfect solution for customers looking for quicker adoption of Hybrid IT.”
Mr. M P Vijay Kumar, CFO, said, “The operating performance has been good despite the challenges of the pandemic. We continue to stay focused on ensuring liquidity and fiscal discipline. We will continue to exercise caution on our Capex plans and making aggressive curbs on discretionary spending for the remainder of the year, while investing more on people, tools and our digital transformation capabilities.
Cash balance at the end of the quarter was INR 3568 Million”.
FINANCIAL HIGHLIGHTS
| Sify Technologies Limited | |||||||||
| Unaudited Consolidated Income Statement as per IFRS | |||||||||
| (In INR millions) | |||||||||
| Quarter ended | Quarter ended | Quarter ended | Year ended | ||||||
| Description | June | June | March | March | |||||
| 2020 | 2019 | 2020 | 2020 | ||||||
| Revenue | 5,259 | 5,518 | 5,736 | 22,952 | |||||
| Cost of Revenues | (3,103 | ) | (3,550 | ) | (3,465 | ) | (14,365 | ) | |
| Selling, General and Administrative Expenses | (1,003 | ) | (1,094 | ) | (1,233 | ) | (4,511 | ) | |
| EBITDA | 1,153 | 874 | 1,038 | 4,076 | |||||
| Depreciation and Amortisation expense | (658 | ) | (506 | ) | (654 | ) | (2,291 | ) | |
| Net Finance Expenses | (236 | ) | (64 | ) | (281 | ) | (860 | ) | |
| Other Income (including exchange gain) | 15 | 28 | 67 | 97 | |||||
| Other Expenses (including exchange loss) | (8 | ) | (12 | ) | - | (3 | ) | ||
| Profit before tax | 266 | 320 | 170 | 1,020 | |||||
| Income tax expense | (94 | ) | (104 | ) | (36 | ) | (314 | ) | |
| Profit for the period | 172 | 216 | 134 | 706 | |||||
| Profit attributable to: | |||||||||
| Reconciliation with Non-GAAP measure | |||||||||
| Profit for the period | 172 | 216 | 134 | 706 | |||||
| Add: | |||||||||
| Depreciation and Amortisation expense | 658 | 506 | 654 | 2,291 | |||||
| Net Finance Expenses | 236 | 64 | 281 | 860 | |||||
| Other Expenses (including exchange loss) | 8 | 12 | - | 3 | |||||
| Income tax expense | 94 | 104 | 36 | 314 | |||||
| Less: | |||||||||
| Other Income (including exchange gain) | (15 | ) | (28 | ) | (67 | ) | (97 | ) | |
| EBITDA | 1,153 | 874 | 1,038 | 4,076 | |||||
BUSINESS HIGHLIGHTS
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GROWTH DRIVERS
The pandemic has accelerated the primary growth drivers in the market for cloud adoption, led by digital initiatives and transformation. This trend is triggering movement of workloads from on-premise Data Centers to hyperscale Public Cloud and hosted Private Cloud in varied degrees, based on the digital objectives of the Enterprise. This results in transformation of the traditional network architecture, and transformation at the edge which connects the end user. The need for digital services like analytics, data lakes, IoT, etc are shifting the balance to adoption of hyperscale Public Cloud vs Private Cloud. Collectively, these trends are generating opportunities for full scale Cloud, DC and Network service providers with digital services skills.
KEY WINS
Highlights of our major wins in the quarter include:
- Customers choosing Sify for migration of their on-premise data center to multi-cloud platforms like Cloudinfinit, AWS and Azure. They also entrusted Sify with management and security.
- Customers choosing Sify as their DC Hosting partner as they embrace a hybrid cloud strategy.
- Customers choosing Sify as their Digital services partner.
- Customers choosing Sify as their Network Transformation and Management partner as they migrate to Cloud-ready networks.
A consolidated summary of the key highlights during the quarter is noted below:
Data Center centric IT Services highlights include:
- 5 customers contracted to have their workload migrated from their on-premise DC to multi-cloud, including one of India’s leading fashion brands, a central government body engaged in reskilling, 2 non-banking finance companies and an NGO working for primary education in India.
- 2 customers contracted for greenfield Cloud implementation, among them a non-banking finance company and multi-faceted industrial group.
- 6 new customers signed up for multiple services like AWS CDN, DRaaS, PaaS and IaaS from verticals such as Education, Insurance, Non-banking Finance and Private Equity.
- 4 customers migrated from their on-premise Data Center to Sify DC. These were across Banking, IT and Media verticals.
- The Government of India signed up for a multi-year, multi-services greenfield deployment of DR.
- 6 new customers signed up for modernization of their DC.
- 8 customers contracted with Sify for Cloud managed services from verticals such as Power, IT and Government.
- 2 major customers signed multi-year contracts for managed security services.
- 2 customers signed up for supply chain integration on the Cloud.
- An insurance major signed up for their DC infra refresh.
Network centric Services highlights include:
- 54 new customers contracted for various Network centric services in the quarter.
- One of India’s largest private home-financing players signed up for the complete outsourcing and transformation of their Network.
- A major niche chemical manufacturing player and a pharma major contracted with Sify for managed and secure SD-WAN services.
About Sify Technologies
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 the largest MPLS network, top-of-the-line DCs, partnership with global technology majors, vast expertise in business transformation solutions modelled on the cloud make it the first choice of start-ups, incoming Enterprises 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 Security services and conduct their business seamlessly from more than 1600 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.
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, 2019, 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 44 22540777 (ext.2055) praveen.krishna@sifycorp.com | 20:20 Media Nikhila Kesavan +91 9840124036 nikhila.kesavan@2020msl.com | Grayling Investor Relations Shiwei Yin +1-646-284-9474 Shiwei.Yin@grayling.com |
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