IT infrastructure firm Sify Technologies posted net loss of ₹26 crore for the third quarter ended December 31, 2024 as against a net profit of ₹4 crore for the corresponding quarter last year. The company attributed the dip to increased depreciation, higher interest payments, and escalating manpower costs. Revenue during the quarter was up 21 per cent to ₹1,049 crore.
Sify’s revenue growth was accompanied by a 13% increase in EBITDA, which stood at ₹191.4 crore for the quarter. However, higher operating expenses and investments weighed down profitability.
Executive Director and Group CFO M.P. Vijay Kumar noted that the company’s current losses reflect its focus on long-term value creation and the cost of strategic investments aimed at meeting future market demands.
“Our strategic investments are guided by a forward-looking approach, designed to anticipate evolving market dynamics and drive sustainable growth. Our pursuit of responsible and innovative growth will be strengthened through such sustainable practices,” Kumar said.
The company operates across three main business segments: Data Center Services, Digital Services, and Network Services. During the quarter, the company expanded its data center capacity by commissioning an additional 5 megawatts.
A move aligns with the growing need for IT infrastructure as businesses increasingly rely on cloud computing and digital storage solutions. Data Center Services contributed 36% to Sify’s overall revenue, followed by Network Services at 41% and Digital Services at 23%.
Despite this expansion, the company faced rising costs across its operations. Increased expenses for manpower, coupled with depreciation on new infrastructure, have placed pressure on the bottom line.
Sify Chairman Raju Vegesna described India as an increasingly critical destination for global technology investment, highlighting its skilled workforce and supportive business environment. “India’s prominence in the global marketplace is creating significant growth opportunities for international companies,” he said, emphasising the country’s role as both a service provider and a test bed for emerging technologies like artificial intelligence.
The Q3 also saw several significant developments in Sify’s operations. The company launched services on its Mumbai-Noida National Long Distance (NLD) network and landed a second intercontinental cable system at its open cable landing station.
In addition, the data center firm signed new contracts across various sectors. These included partnerships with public and private banks for disaster recovery services, cloud migration projects for manufacturing and retail clients, and security solutions for government technology missions.
While Sify’s investments in infrastructure and services position it for future growth, challenges remain. The company’s net loss highlights the financial strain of expanding capacity and maintaining competitive services in a crowded market.
The company also adopted new international accounting standards this quarter, aiming to provide greater transparency and consistency in its financial reporting.
