EBITDA for the quarter at INR 161 million
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:
Mr. Raju Vegesna, Chairman, said, “We have come through a challenging phase in our growth and I am happy to state that our focused approach is generating measurable results. At the beginning of the financial year, I had shared my vision to turn Sify into a Services and Solutions leader. Our strong showing across all major business lines is a positive indicator of the direction we are moving in. On the business environment, we are pleased that the Government is opening up several sectors for FDI. The true effect of these measures will take some time to bear results, but we believe this would allow several sectors to aggressively ramp-up, thus opening up additional growth opportunity for us. We will continue in our endeavor to become a prominent solutions expert catering to large and emerging Enterprises, SMBs and the Government services.”
Mr. Kamal Nath, CEO, said, “We are in a unique position to establish ourselves into a broad based IT Services and Solutions player by integrating the products, applications, professional services and managed services portfolio. Vertical Solutions and Cloud based Services model will be the two key propositions for the market. Our future growth will be primarily led by leveraging our Cloud Services model around both Infrastructure and Applications and with increased focus around Integration and Managed Services offerings.”
Mr. M P Vijay Kumar, CFO, said, “Our investments in infrastructure over the past years have given us a strong base as a Solutions and Services provider. Many of these investments should start generating significant revenue over the coming quarters, as they are in an advance stage of commissioning. At the same time, we are engaged in a continuing exercise to keep a strict eye on the cost and completion without time overruns, thus saving us valuable capital. As I remarked in our previous report, a large share of this incremental capital and operating expenditure will be incurred to support the large network integration contract previously announced and our two new state-of-the-art Data Centres in Delhi and Mumbai.
"The successful sale of our interest in MF Global Sify Securities India Private Limited has improved our cash position, and will help support the forecasted investments. Cash balance at the end of the quarter was INR 907 million.”
FINANCIAL HIGHLIGHTS
| Unaudited Consolidated income statement as per IFRS | ||||||||||||
| (In INR millions) | ||||||||||||
| Description | Quarter ended | Quarter ended | Quarter ended | |||||||||
| Sept | Sept | June | ||||||||||
| 2012 | 2011 | 2012 | ||||||||||
| Enterprise | 1,882 | 1,613 | 1,817 | |||||||||
| Software | 177 | 202 | 157 | |||||||||
| Revenue | 2,059 | 1,815 | 1,974 | |||||||||
| Cost of Revenues | (1,101 | ) | (1,060 | ) | (1,123 | ) | ||||||
| Selling, General and Administrative Expenses | (797 | ) | (619 | ) | (672 | ) | ||||||
| EBITDA | 161 | 136 | 179 | |||||||||
| Depreciation and Amortisation expense | (208 | ) | (172 | ) | (197 | ) | ||||||
| Net Finance Expenses | (16 | ) | (72 | ) | (55 | ) | ||||||
| Other Income | 17 | - | 5 | |||||||||
| Share of Affiliates | - | 19 | - | |||||||||
| Profit from sale of shares in affiliate and rights therein | 658 | - | - | |||||||||
| Profit / (loss) Before tax | 612 | (89 | ) | (68 | ) | |||||||
| Income Taxes | - | - | - | |||||||||
| Profit / (loss) for the period | 612 | (89 | ) | (68 | ) | |||||||
| Profit attributable to: | ||||||||||||
| Reconciliation with Non-GAAP measure | ||||||||||||
| Profit / (loss) for the period | 612 | (89 | ) | (68 | ) | |||||||
| Add: | ||||||||||||
| Depreciation and Amortisation expense | 208 | 172 | 197 | |||||||||
| Net Finance Expenses | 16 | 72 | 55 | |||||||||
| Less: | ||||||||||||
| Other Income | (17 | ) | - | (5 | ) | |||||||
| Share of Affiliates | - | (19 | ) | - | ||||||||
| Profit from sale of shares in affiliate and rights therein | (658 | ) | - | - | ||||||||
| EBITDA | 161 | 136 | 179 | |||||||||
BUSINESS HIGHLIGHTS:
Network services
IT Services
Software Services
About Sify Technologies
Sify is among the largest integrated Managed Network, IT and Software services companies in India, offering end-to-end solutions with a comprehensive range of products delivered over a common telecom data network infrastructure reaching more than 900 cities and towns in India.
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.