Sify Q3 revenues hit Rs. 1.80 bn, net loss down

BANGALORE, INDIA: Sify Technologies Limited, a major player in managed enterprise, network and ICT Services in India, announced its consolidated results for the third quarter of fiscal year 2011-12 on Monday.

The revenues for the quarter ended December 31, 2011 was Rs. 1,805 million, with enterprise services contributing Rs. 1,526 million, up approximately 5 per cent, and software services Rs. 182 million, up approximately 16 per cent, over same quarter last year.

The company's revenues from commercial and consumer services stood at Rs. 97 million. EBITDA for the quarter increased to Rs. 136 million, up 46 per cent from Rs. 93 million in the same quarter previous year.

The net loss dropped to Rs. 73 million, as against a net loss of Rs. 96 million in the same quarter previous year. Sify's cash balance at the end of the quarter was Rs. 658 million.

At the results announcement, Raju Vegesna, chairman & managing director, said, "We are pleased to present our financial performance for the third quarter of FY 2011-12 against the backdrop of reaching an important milestone towards becoming India's premier ICT player."

"Our cable landing Station in Mumbai is ready for operations, making Sify the first ICT company in India to own a cable landing station for international submarine cable systems."

Sify also signed a Landing Party Agreement (LPA) with MENA Submarine Cable System S.A.E, a licensed telecommunications operator in Egypt. "This Cable Landing Station positions Sify well for the growing opportunities for ICT and cloud services across the world," said Vegesna.

"The State Data Centre for Kerala has gone live, making it our second on-stream State Data Centre out of a total of five we have won till date. We are looking at consistent recurring revenues from these State Data Centres for the next five years."

"Consistent with our strategy to develop solutions for the large and growing SMB segment, our commercial and consumer business continues to expand their market share in both small and medium enterprises and SOHO businesses... we have introduced value-added IT services tailored to this market, such as Sify mystorage, our automatic back-up and storage service for SOHO and SMBs."

M.P. Vijay Kumar, chief financial officer, said, "The company remains focused on optimizing cost and cash flow with operating cash flow continuing to be positive."

Cash balance at the end of the quarter was Rs. 658 million and undrawn line of credit stood at Rs. 335 million. "Our investments in EIG and our cable landing station in Mumbai should see cash generation soon. Our inclusion into the NASDAQ Global Select Markets is a significant endorsement of our corporate practices," said Kumar.