Sify Technologies Limited (Nasdaq:SIFY), headquartered in Chennai,
India, 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 fiscal year 2014-15.
PERFORMANCE HIGHLIGHTS:
- Revenue for the year ended March 31, 2015 was INR 12864
million, an increase of approximately 23% over last year. Revenue
for the quarter was INR 3594 million, an increase of about 37% over
the same quarter last year.
- EBITDA for the year was INR 2005 million, an increase of about
27% over last year.
- Net Profit for the year was INR 389 million, an increase of 22%
over last year.
- CAPEX during the year was INR 944 million. Cash balance at the
end of the year was INR 1471 million.
Mr. Raju Vegesna, Chairman, said, "Sify has
matured from being a provider of standalone services to becoming an
active partner in the planning stage of client projects. This
points to the maturity of our knowledge practices, client
engagement across the entire IT life cycle, and the cost-effective
solutions that we are able to bring to the table.
"With our entry into the North American market, we will leverage
our success in building cost-effective, hybrid, and scalable IT
solutions in India. We will also actively pursue opportunities
stemming from new digital transformation models, with a focus on
remote infrastructure management and digital learning.
"Within India, we are seeing the early signs of renewed economic
confidence, and we are well-positioned to benefit from an improved
economic climate, given our successful delivery of client projects
and penetration across the different Enterprise segments."
Mr. Kamal Nath, CEO, said, "Financial Year 14-15
has been a significant year in our Sify 3.0 transformation
journey.
"While we continue to grow beyond industry standards in our
Telecom business, our IT services portfolio led by Data Center
Transformation Services and Managed Application Infrastructure
Services has also gained significant traction. The market has
endorsed our position as a 3rd platform led IT Services Provider
encompassing Data Centre, Network and Application Services
resulting into multiple Total Outsourcing contracts being signed
during the year.
"Our next phase of growth would be based on these successes and
the portfolio augmentation around 3rd platform." Mr. M P
Vijay Kumar, CFO, said, "We are pleased to report over 20%
growth in revenue amidst a business environment that can best be
described as cautiously optimistic. We managed to hold steady on
both revenue growth and cost management. We continue to weigh new
investment options against emerging business opportunities to scale
our business, while at the same time improving our current asset
utilization.
"Net income for this fiscal year has grown, but was unable to
keep pace with the comparably higher growth in revenue and EBITDA.
This reflects the higher depreciation and financing costs, related
to our investments in capacity and increased working capital with
the higher business volume.
"Based on the significant one-time investments we have made in
2013 and 2014, it will be a little more time before we can fully
monetize our investments, especially the data centres. However, our
planned investments for 2015-16 tend to be more incremental, and
directly linked to increases in volumes or new customer contracts.
"The Board has recommended a dividend of 10%. Cash balance at the
end of the year was INR 1471 million." Financial
Highlights Unaudited
Consolidated income statement as per IFRS
(In INR
millions)
Year ended Year ended
Quarter ended Quarter ended
Description March
March March March
2015
2014 2015 2014
Revenue
12,864 10,460 3,594
2,632
Cost of Revenues
(7,764) (6,137)
(2,276) (1,621)
Selling, General and Administrative
Expenses (3,095)
(2,739) (795) (693)
EBITDA 2,005 1,584
523 318
Depreciation and
Amortisation expense (1,275)
(1,101) (340) (266)
Net
Finance Expenses (436)
(257) (110) (57)
Other
Income 95 92
29 45
Profit for the period 389
318 102
40
Reconciliation with
Non-GAAP measure
Profit for the period 389
318 102
40 Add:
Depreciation and Amortisation expense
1,275 1,101 340
266
Net Finance Expenses 436
257 110
57 Less:
Other Income (95)
(92) (29) (45)
EBITDA
2,005 1,584 523
318
Note: Year ended March 31, 2014 are audited
numbers
Business Highlights
Telecom
- Revenue from the data business grew more than 30% for the 3rd
year in a row. Voice business grew 11% over the previous year.
- During the course of the year, the business added more than 300
customers across all verticals.
- Key wins in the data business include one of India's largest
Public sector bank, a Public Sector Insurance Company and a
Nationalised bank.
- Our focus on Services under Sify 3.0 gained traction with
contracts from a global automobile company and an Indian automotive
component manufacturer for WAN outsourcing.
- This year, the business achieved a major milestone by
connecting more than 27000 locations for the Department of Post,
Government of India.
- During the course of the year, the MENA (Middle East North
Africa Cable) System became operational at our Cable Landing
station in Mumbai. With this addition, Sify now has access to over
5 cable systems for carrying traffic on the Mediterranean and
Atlantic routes. This has helped us grow Internet capacity by more
than 6 times in sync with capacity available.
Data Centre Services
- Data Centre revenue grew by 4% compared to the previous
year.
- Sify has expanded its capacity at its flagship Techspace Data
Center in Navi Mumbai by building a dedicated EHV substation, with
the capability to expand up to 50 MW.
- 52 new clients were acquired from across verticals, including
BFSI, ITeS, Retail and Manufacturing, many of them for hosting
mission critical IT setups.
- The business was contracted to set up a large Data Centre for
one of India's largest Banking players
- We have signed a reseller agreement with one of the largest
providers of Managed IT, Cloud and Recovery services to take our
offerings to their customers across the globe.
- The business was conferred the prestigious CIO CHOICE 2015
Honour & Recognition award for its suite of Integrated Data
Centre solutions.
Cloud and Managed Services
- The Cloud and Managed Services revenue grew 21% over previous
year.
- The business added 41 customers in the year, 12 of them for the
newly launched Data Centre Transformation Services.
- The business has also signed multiple Total Outsourcing
Contracts wherein we have migrated the client from 2nd platform to
3rd platform, thereby substantially lowering their cost of IT
operations.
- The business has also entered into partnership with Microsoft
for its Cloud OS Network, Site Recovery and to offer
SQL-as-a-Service. A second partnership has been signed with Akamai
to provide CDN Service
- We were awarded the Best Cloud Storage deployment Architecture
by Hitachi Data systems this year.
- New Services launched include Auto scale and Scheduler, Object
Storage, High Performance Tier of Storage and 02 site HA DR plans
for Compute.
Applications Integration Services
- Revenue grew 4% compared to the previous year.
- This business has signed up 11 customers with contract values
of more than INR 100 million. In all, over 30 new clients were
added for the year, of which 10 new customers signed up for our
Managed SAP Services offering
- The business signed the first end-to-end SAP led total
outsourcing deal for a major CPG company in India.
- We have signed up the first core banking implementation project
for a Co-operative Bank.
- We have entered into a strategic partnership with a Student
Lifecycle Management solution provider and have had 4 wins in the
last year for this service.
- Sify is now a Cloud Services Partner (CSP) of Microsoft to
support their O365 product suite.
Technology Integration Services
- Revenues from the Technology Integration services grew 69% over
last year.
- The business added more than 110 new customers under Network
Integration, Security & DC and Unified Communication
services.
- Significant multi-year contracts were signed with Public Sector
Insurance Companies and Banks to build and manage their Network
Infrastructure.
- The business has signed multiple Managed Security Services
contracts under the FSI vertical.
- Business has also signed up multiple Data Centre and Disaster
Recovery Infrastructure Build projects for PSU and Government
entities.
- Partnership levels with two Top Networking Technology OEMs, Two
Top Security OEMS, One Storage OEMs and Two Collaboration OEMs were
also upgraded during the course of the year.
About Sify Technologies
Sify is among the largest integrated ICT Solutions and 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 1300 cities and
towns in India. This telecom network today connects 38 Data Centres
across India including Sify's 6 Tier III Data Centres across the
cities of Chennai, Mumbai, Delhi and Bengaluru. A significant part
of the company's revenue is derived from Enterprise Services,
comprised of Telecom services, Data Centre services, Cloud and
Managed services, Applications Integration services and Technology
Integration services. Sify also provides services that cater to the
burgeoning demands of the SMB community, much of it on its Cloud
services platform. Sify is ISO 9001:2008 certified for Enterprise
Sales, Provisioning, support and customer relationship management
of ICT solutions and services including VPN, Network, Voice, Data
Centre hosting, Integration services, security services and managed
services. Sify has been certified in ISO / IEC 20000 - 1:2011 and
ISO/IEC 27001:2005 certified for Internet Data Centre operations.
Sify has been certified in SSAE16 SOC2 Type II for Cloud
Infrastructure and in TL 9000 for Enterprise Network Services,
Network Integration Services including Design, Implementation and
Support services. The latter certification is telecommunication
industry's quality system standard that expands the requirements of
the International Standards Organization's ISO 9000 quality
management standard in use by industries worldwide. Sify has
licenses to operate NLD (National Long Distance), ILD
(International Long Distance) services and ISP services and offers
VoIP backhaul for international carriers. With the Sify Cable
landing station and partnerships with submarine cable companies
globally, Sify is present in almost all the spheres of the ICT eco
system. Sify has an expanding base of Managed Services
customers, both in India and overseas, and is India's first
enterprise managed services provider to launch a Security
Operations Center (SOC) to deliver managed security services.
The software team develops applications and offers services to
improve business efficiencies of its current and prospective client
bases. Sify also offers services in the specialized domains of
eLearning, both in India and globally. 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, 2014, 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.
A photo accompanying this release is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=32361
CONTACT: For further information, please contact:
Sify Technologies Limited
Mr. Praveen Krishna
Investor Relations & Public Relations
+91 44 22540777 (ext.2055)
praveen.krishna@sifycorp.com
Grayling Investor Relations
Ms. Truc Nguyen (ext. 418)
+1-646-284-9400
truc.nguyen@grayling.com
20:20 Media
Ms. Divya Singh
+91 0 8552944004
divya.singh@2020msl.com
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