Sify Technologies, a comprehensive ICT services & solutions provider, reports revenue of Rs 2,432 crore and net profit of Rs 159 Crore for fiscal 2021.
The performance of Sify Technologies comes in the backdrop of the 1st wave of Covid-19 pandemic as companies across the globe took a sudden decision to ahead with their digital game plan.
The company’s EBITDA for the year touched at Rs 508.5 crore, registering a growth of 25% over last year. Profit before Tax for the fiscal is at Rs 159.9 crore, an increase of 57% over last fiscal.
Sify also announced that a deferred tax asset of Rs 60 crore has been recognised at the end of the year based on
an assessment of reasonable certainty of future taxable income in the individual entities of the group. In the future, Tax expenses comprising Current tax and Deferred tax would be in line with the effective tax rate.
The company also disclosed that its CAPEX spending for the same period reached Rs 348.3 crore. Also, cash in balance at the end of the year reached Rs 543.8 crore.
Commenting on the performance, Sify Technologies Chairman Raju Vegesna said India is in the grip of the second wave of the Covid pandemic and governments have reintroduced lockdowns to deal with the calamity.
“The first wave was a wakeup call for large companies to increase their investment in automation, and that has helped insulate them to a large measure this time around. Now that the merits of automation have been firmly established, we should see more mid-sized businesses adopt automation aggressively,” said Raju Vegesna.
Investment in security
Raju Vegesna also said the new normal has blurred the lines between work and home environment, calling for businesses to invest in the security of their data over public networks.
“The challenge is in ensuring public networks are as secure and resilient as corporate networks. That said, we wish for the scourge of the pandemic to be eradicated so that people and livelihoods can return to the old normal,” saif Raju Vegesna.
Sify Technologies CEO Kamal Nath said a year into the pandemic, all the industries – small, medium or large have accelerated their digital transformation and cloud adoption drive to be able to sustain and grow their businesses in a changed environment.
“Work from anywhere, movement to the hybrid cloud platform, strengthening of disaster recovery plans to enable business continuity, application modernisation – all these market trends find a natural solution in Sify’s “Cloud@core” model and offerings,” said Kamal Nath.
He also said the other important highlight is the growth of Hyperscale CSPs and OTT players in India which on one hand is accelerating the company’s Data Centre colocation business and on the other hand strengthening its hybrid cloud offerings. “Overall, we are absolutely on the right side of the trend curve,” said Kamal Nath.
Expressing happiness over the development, Sify Technologies CFO M P Vijay Kumar said the company continues to show steady growth through 2020-21 despite the challenges that the pandemic has posed.
“The healthy EBITDA growth has increased our confidence to spend on ramping up both people and tools to increase our digital transformation service capabilities,” said the CFO.
Vijay Kumar said the company expects contracts to take slightly longer to conclude as clients take time to regain momentum. “Our focus is on insulating the organisation as we carefully manage our costs, while ensuring that there is no lag in services delivery and customer experience,” he said.
Vijay Kumar also highlighted the fact that the firm is on its commitment to the data center, cloud, and network-centric expansion plans, and will exercise due caution in terms of both timing and cost structure of these projects.
“Considering the resurgent pandemic and the uncertainty on the pace of economic recovery, the Board did not recommend the payment of dividend this year and instead advised that capital be conserved,” he said.
Following shareholders’ approval, we have given effect to Business Transfer Agreements entered into, during the quarter, for the transfer of Data Center business and Digital Services business to wholly-owned subsidiary companies.
Sify Technologies finds cloud at the core of its solutions portfolio. Sify is focused on the changing ICT requirements of the emerging Digital economy and the resultant demands from large, mid and small-sized businesses.
Sify’s infrastructure comprising the largest MPLS network, top-of-the-line DCs, partnership with global technology majors, vast expertise in business transformation solutions modeled on the cloud make it the first choice of start-ups, incoming enterprises and even large enterprises on the verge of a revamp.
More than 10000 businesses across multiple verticals have taken advantage of our unassailable trinity of data centers, networks, and security services and conduct their business seamlessly from more than 1600 cities in India.
Internationally, Sify has a presence across North America, the United Kingdom and Singapore.