Sify Reports Strong quarter on the back of Digital adoption by SME’s

Sify has reported Profit after tax of Rs 356 million, an increase of 39 per cent over the same quarter last year, on the back of rapid digital adoption by small and medium enterprises.

Revenues came in at Rs 6986 million, a growth of 18 per cent over the same quarter last year. Raju Vegesna, Chairman, 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”.

EBITDA or Earnings before Income Tax Depreciation and Amoritisation was Rs 1477 million, an increase of 24 per cent when compared to the same period last year. Kamal Nath, CEO, said, “As declared earlier, the creation of the two subsidiaries; Sify Infinit 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 digitalisation. Our Cloud@core portfolio of services sits perfectly with this new demand and is increasingly reflected in our current customer engagements.

During the quarter, Sify has also invested in procuring Renewable energy for its Mumbai data centre to the tune of Rs 225 million. Cumulatively, Sify has delivered 74 MW of data centre capacity as on Sep 30, 2021.

Results at a glance

Revenue from Data Centre Services grew by 47% over the same quarter last year.

Revenue from Digital Services (comprising Cloud and Managed Services, Applications and Technology Integration Services) grew by 17% over the same quarter last year.

Revenue from Network Centric services grew by 7% over the same quarter last year.

The Revenue split between the businesses was Network Centric Services- 42%, Data Center Services – 27% and Digital Services- 31%.