Sify Technologies Announces Results for Third Quarter of Fiscal Year 2011-12 (India)

Sify Technologies Limited, a leader in Managed Enterprise, Network and ICT Services in India with growing global delivery capabilities, announced its consolidated results under International Financial Reporting Standards (IFRS) for the third quarter of fiscal year 2011-12.

Performance Highlights Q 3 FY 11-12:

*Revenues for the quarter ended December 31, 2011 was INR 1805 million.

*Revenue from Enterprise services was at INR 1526 million, up approximately 5% and from Software services was INR 182 million, up approximately 16% over same quarter last year.

*Revenue from Commercial and Consumer services was INR 97 million for the third quarter.

*EBITDA for the quarter increased to INR 136 million, as compared to INR 93 million in the same quarter previous year.

*Net loss for the quarter reduced to INR 73 million, as against a net loss of INR 96 million in the same quarter previous year.

*Capex during the quarter was INR 225 million. Cash balance at the end of the quarter was INR 658 million and undrawn line of credit stood at INR 335 million.

Mr. Raju Vegesna, Chairman & MD, 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. With the opening of this landing station, Gulf Bridge International (GBI) became the first to land their sub-sea cable system in India.

“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.

“In early 2011, Sify had announced a strategic investment in Europe India Gateway (EIG) cable capacities to support our expanding global operations across Europe, Middle East and Africa. We are happy to share that the EIG cable has gone live up to Europe this quarter. A US $700 million high-capacity fiber-optic cable, EIG will be the first, direct, high-bandwidth optical fiber system from the UK to India.

“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 to-date. We are looking at consistent recurring revenues from these State Data Centres for the next 5 years.

“Our strategy to drive Network, IT Services and Software as a complete portfolio of services to Enterprise customers in India and International markets, is allowing us to better capitalise our skills and service offerings.

“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. As targeted, most of the growth is coming from Tier II and III cities. In addition to our portfolio of network and internet services to the SMB market, we have introduced value-added IT services tailored to this market, such as Sify mystorage, our automatic backup and storage service for SOHO and SMBs.

“Horizontal expansion of the services basket is also yielding good dividends for the Software services helped largely due to the demand for automation of services, both from the government and allied bodies.

“Both the Central and State governments are pursuing an agenda of digitizing existing records, building a central storage repository and augmenting connectivity and going forward, we should see more opportunities emerging for our products and services.”

Mr. MP Vijay Kumar, Chief Financial Officer, said, “The Company remains focussed on optimising cost and cash flow with operating cash flow continuing to be positive.

“Cash balance at the end of the quarter was INR 658 million and undrawn line of credit stood at INR 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 practises.”

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Subsea World News Staff , January 31, 2012