Sify Technologies has reported its consolidated financial results for second quarter (Q2) of 2021-22. The total revenue stood at Rs. 6.98 billion, witnessing YoY growth of 18 per cent. EBITDA for the quarter stood at 1.47 billion, recording a YoY growth of 24 per cent. Meanwhile, profit before tax for the quarter increased by 11 per cent over the same quarter last year and was reported to be Rs. 461 million. Further, profit after tax observed a growth of 39 per cent over the same quarter last year and stood at Rs. 356 million. CAPEX during the quarter was Rs. 1.49 billion while cash balance at the end of quarter stood at Rs. 2.82 billion.
Revenue from network centric services grew by 7 per cent over the same quarter last year. Further, revenue from Data Centre Services grew by 47 per cent over the same quarter last year. Meanwhile, revenue from digital services (comprising cloud and managed services, applications and technology integration services) grew by 17 per cent over the same quarter last year. The revenue split between the businesses was Network Centric Services – 42 per cent, Data Center Services – 27 per cent and Digital Services – 31 per cent.

Commenting on the financial results, Raju Vegesna, chairman, Sify Technologies, said, “India has bounced back remarkably well from the pandemic, with businesses reporting near pre-pandemic results. If anything, this pandemic helped to clearly establish what a proactive administration can achieve. Through the course of multiple lockdowns, the government set the pace by enabling critical IT infrastructure and following that up with aggressive adoption of automation for last mile delivery of welfare services. Similar initiatives have rapidly been adopted by small and medium enterprises, driving demand for services like data centres and networks. That, combined with geo-political changes, has made India increasingly attractive to MNC enterprises as the next destination for IT infrastructure. We expect these tailwinds to create new opportunities for Sify”.

Meanwhile, Kamal Nath, CEO, Sify Technologies, said, “As declared earlier, the creation of the two subsidiaries; Sify Infinite Spaces Limited and Sify Digital Services Limited under the parent, Sify Technologies Limited, was to ensure that we can focus our strategy and investments in line with the evolving market conditions. Our financial results endorse this decision. The decision was timed to the Enterprise world’s accelerating demand for Hyperscale Data Centre demands, cloud-based digital transformation services and application modernization, all central to our current services bouquet. With the return in market sentiment, we are seeing aggression in customers’ decision making in all forms of digitalization. Our cloud@core portfolio of services sits perfectly with this new demand and is increasingly reflected in our current customer engagements.”

Also, M.P. Vijay Kumar, CFO, Sify Technologies, said, “We continue to stay focused on expanding our Data Centre footprint, along with our network reach and delivery capabilities in our digital services. Operating performance continues to be stable. While the economic recovery is a healthy, positive sign, we will continue to be vigilant on cost efficiency, capital allocation and liquidity management. Cash balance at the end of the quarter was Rs 2.82 billion.”
Business Highlights

• As part of the company’s corporate venture capital initiative, the company has cumulatively invested a little more than $3 million across 4 startups in the United States.
• During the quarter, Sify has also invested in procuring renewable energy for its data centre in Mumbai to the tune of Rs. 225 million. Cumulatively, Sify has delivered 74 MW of data centre capacity as on September 30, 2021.
• In the quarter, Sify completed the upgrade of its backbone network in the key cities of Hyderabad, Chennai, Bangalore, Mumbai and Delhi. This 4X upgrade to the current capacity can now deliver high-density services for its Enterprise customers.
• In addition, Sify completed its metro network deployment in Hyderabad, Pune, Jaipur, Ahmedabad, and Kolkata, adding to company’s metro networks in Mumbai, Chennai, Bangalore and Delhi. With this deployment, Sify can make available services to 100G on tap to available Enterprise customers.
• Sify continues to expand its network coverage and has increased wireless base station density by 23 per cent to deliver high bandwidths to enterprise customers.
• During the quarter, Sify signed a landing party agreement to land a new submarine cable at company’s Open Cable Landing Station in Versova, Mumbai.