Sify reports revenues of INR 3147 million for Q3 of FY 2014-15
Chennai, India, January 20, 2015: Sify Technologies Limited, a leader in Managed Enterprise, Network, IT and Software services in India with global delivery capabilities, today announced its consolidated results under International Financial Reporting Standards (IFRS) for the Third quarter of fiscal year 2014-15.
Raju Vegesna, Chairman and Managing Director, said, “As we close 2014, all indicators point to cautious optimism in the investment climate within India. While there is increasing confidence that the economy is poised for long-term growth, it will still be some time before the business community commits itself to significant new investments.
Our proven mix of services and solutions are being viewed as a viable alternative given the constraints on capital, balanced by the pressure to go to market more quickly. Sify’s flexibility and comprehensive ICT portfolio, combined with our OPEX-based service provider approach, is attractive to both emerging and established companies looking to revamp their legacy systems.
Our success in delivering the pan-India network integration project for the Government has earned us the acknowledgment of our peers. Some of India’s best IT companies are now our consistent partners, ensuring that our clients will receive both best of breed technology and faster response times.”
Kamal Nath, CEO, said, “During the Year 2014-15, we had launched various initiatives and offerings focussed on transformation of the IT Infrastructure of our clients. We are happy to share that these initiatives are resulting into multi-year transformation engagements with existing customers and new clients as well. These engagements are mostly around our Managed Network Services and Data Centre centric IT Services.
We are increasingly being recognised as “new age” IT Services Provider vis-a-vis traditional IT Services Companies. We would like to expand on this positioning in the coming quarters.”
M P Vijay Kumar, CFO, said, “This quarter, both revenue and EBITDA showed healthy growth despite increase in operating costs. Our Net Profit remains under some pressure due to increase in depreciation. This was anticipated based on the significant investment deployed in our new Data Centres, which are still in the early phases of operations. Depreciation and other costs associated with the Network Integration project for the Government have increased as we approach the handover phase. Cash balance at the end of the quarter was INR 1558 million.”
Business Highlights
Telecom
- The data business continues to grow in revenue terms by 13% over the same quarter last year and by over 3% over last quarter.
- Order Book has grown by 12% over last quarter.
- During the quarter Sify won a large multi-year contract from a Public Sector Insurance company to provide connectivity to over 1000 branches.
- Sify also won a WAN outsourcing contract from a global auto-major as it seeks to expand its distribution in India. The WAN outsourcing contract covers all aspects of the WAN including Security.
- The continued focus on providing greater value through managing the customer networks is gaining traction with the links under Advanced Network Management having gone up by 7.6% during the quarter.
- During the quarter, Sify handed over 4900+ circuits to various customers.
Data Centre Services
- DC Business continues to grow in revenue terms by 5% over the same quarter last year and by over 4% over last quarter.
- The business has signed up a total of 17 new customers this quarter.
- The business also signed up a leading pharmaceutical company and a multinational consumer products company for hosting their mission critical setup.
- India’s No. 1 Cables & Wires Company also signed up to host their IT infrastructure.
- Sify migrated the production setup for a leading global integrated security company to one of our Data centre.
- Other key wins came from across the verticals like a leading IT distribution company, couple of Agricultural Chemicals organizations, a web-based vehicle tracking company and a leader in copyediting, proofreading, translation and research.
- Wins also included one from a multi-Billion dollar business conglomerate that has presence in Chemicals, Shipping, Engineering and Metals, a Multinational corporation that designs, manufactures, markets and distributes vehicles and an Indian public trust that provides financial education and standards.
- Sify expanded capacity in its Chennai Data Centre.
- Sify was awarded the prestigious CIO Choice award for Integrated Data Centre solutions
Cloud and Managed Services
- The business has grown by 51% over last quarter and 62% over the same quarter last year.
- Order Book has grown by 40% over last quarter.
- The business signed up a Shipping and Chemicals conglomerate, a Tobacco major and a Media house in multi-year deals.
- Other large engagements were with a Cement major, an Agricultural Chemical organisation, a School stationary player, an upcoming Retail chain and one of India’s oldest Mobile service providers.
- Other clients who have enhanced their engagements with us include a Health care chain, a Logistics player and a Retail brand.
Applications Integration Services
- This business has grown over 27% Quarter on Quarter this year.
- Order Book has grown by 12% over last quarter.
- The business signed up 2 large orders from a Nodal agency for a State Government and a private education player.
- For the Shipping and Chemicals conglomerate mentioned above, in addition to the Managed Services signup, we have also been entrusted SAP application support.
- One of our multinational Pharmaceutical clients has renewed their eLearning contract.
Technology Integration Services
- This business has added 27 new customers this quarter.
- Sify won a contract for Network rollout and deployment of Network Infrastructure from a Large Public sector Insurance Company.
- A Public Sector Bank contracted with Sify to setup and maintain their Security Operation center in a multi-year engagement.
- A Mega Power Project engaged us to set up their Data Center and Data Recovery centers in two States.
- A Large MNC healthcare Group contracted us to setup Network Infra and DC build.
- A Public Sector Bank signed Sify as their Security Integrator to run their security operations.
- We also signed a Large Private FSI to deploy Web Security services.
- We have signed up with a leader in Cyber Security and malware protection as their Leading partner in India.
- This business was accorded the “Government Partner of the Year” commendation by a leading Technology OEM.
