December 1, 2020 4:47 pm

Sify reports 2% revenue growth in Q2 of FY 2020-21

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Sify Technologies reported revenues of Rs 5899 million for the second quarter of FY 2020-21, an increase of 2% over the same quarter last year. The company said that the EBITDA for the quarter was Rs 1189 million, an increase of 12% over the same quarter last year.

While profit before tax for the quarter was Rs 414 million, an increase of 48% over the same quarter last year, the profit after tax for the quarter was Rs 257 million, an increase of 35% over the same quarter last year.

“Our people commitment and business continuity processes have ensured that operating performance continued to remain steady throughout this period of caution. We will be conservative in our operating spends, while we increase our Capex to support the anticipated demand for our data center and network infrastructure,” said M P Vijay Kumar, CFO, Sify Technologies.

The company said that the pandemic has accelerated the primary growth drivers in the market for adoption, led by digital initiatives and transformation.

“This trend is triggering the movement of workloads from on-premise Data Centers to hyper-scale Public Cloud and hosted Private Cloud in varying degrees, based on the digital objectives of the enterprises,” said a company note.

The revenue from the key business area for the company — Data Center centric IT Services — grew 12% against the same quarter last year. Segment-wise, revenue from Data Center Services, Cloud and Managed Services and Technology Integration Services grew 36%, 9% and 22% respectively, while revenue from Applications Integration Services fell by 37%.

On the other hand, revenue from Network Centric Services fell by 8% over the same quarter last year but the revenue from Data Connectivity Services grew 3% while revenue from the Voice business fell by 36%.

“During the quarter, we have witnessed the urgency among clients to adopt IT infrastructure models which would provide them with the agility and flexibility to run their businesses remotely during the crisis. Hybrid IT model built on hybrid cloud infrastructure is evolving as the way to go,” said Sify CEO .

Key Highlights from second quarter of FY 2020-21

Data Center centric IT Services

1)  3 customers contracted to have their workload migrated from their on-premise DC to multi-cloud, including one of India’s oldest software majors, a leading fashion brand and one of the most established banks in India.

2) 3 customers contracted for greenfield Cloud implementation; among them a leading automotive financial company, the mining subsidiary of one of India’s oldest MNCs and a Public Sector Steel and Wire company.

3) 10 new customers signed up for multiple services like CDN, DRaaS, PaaS and IaaS from verticals such as IT, Manufacturing, Financial Services, Real estate, and Data Analytics.

4) 6 major customers migrated from their on-premise Data Center to Sify DC. Among them was a subsidiary of the Central bank, a global content delivery major, the earlier mentioned automotive financial company, a mobility player, a private bank and an accredited insurance administrator.

5) 2 customers signed up for multi-year complete Digital Transformation services to build and deploy new age Hybrid IT services, DC colocation services, Cloud services, Managed Network and Security services.

6) 3 customers contracted Sify for Cloud managed services from IT and Business Processing verticals.

Network-centric Services added 43 new customers in the quarter

1) This quarter, Sify added an interconnect path to the cloud with the commissioning of Oracle Fast Connect.

2) In a major win for the IoT services, a major retail chain signed up for Energy management across their business.

3) Sify was contracted to build the on-premise and pan India SDWAN for the Central government’s payment gateway. Separately, a public sector non-life Insurance company, an IT major and a logistics player contracted with Sify for managed and secure SD-WAN services.

4) 6 public and 1 private BFSI players, 8 institutions of higher learning and 7 manufacturing majors signed up for remote collaboration services.

5) A US MNC contracted Sify to build a contact center service to enhance its enterprise service experience.

6) 2 banks, a subsidiary of the Central bank and 2 private NBFCs contracted with Sify to expand their existing engagement for services.

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