Sify Technologies Ltd (NAS:SIFY)
$ 3.09 0.01 (0.33%) Market Cap: 223.16 Mil Enterprise Value: 553.66 Mil PE Ratio: 0 PB Ratio: 0.70 GF Score: 77/100

Q2 2025 Sify Technologies Ltd Earnings Call Transcript

Oct 22, 2024 / 12:30PM GMT
Release Date Price: $3.63 (+0.83%)

Key Points

Positve
  • Sify Technologies Ltd (SIFY) reported a 17% increase in revenue over the same quarter last year, reaching INR 10,275 million.
  • EBITDA increased by 29% compared to the same quarter last year, indicating strong operational performance.
  • The company commissioned 6.5 megawatts of data center capacity in Mumbai, expanding its infrastructure capabilities.
  • Sify Technologies Ltd (SIFY) has a diverse revenue stream with data center colocation services, digital services, and network services contributing 32%, 32%, and 36% respectively.
  • The company is actively investing in sustainable practices, particularly in its data centers, aligning with broader digital transformation initiatives.
Negative
  • Profit before tax was only INR 87 million, and profit after tax was INR 49 million, indicating thin profit margins.
  • Increased capital investments have led to higher depreciation and interest costs, impacting financial statements.
  • The company faces competitive pressures from both domestic and international players entering the Indian data center market.
  • Sify Technologies Ltd (SIFY) has significant debt, with plans to continue using debt for data center expansion, which could impact financial flexibility.
  • The company's gross margins remain relatively low, with no immediate prospects of reaching higher levels typical of IT services companies.
Operator

Good day and welcome to the Sify Technologies financial results for second quarter, fiscal year 2024-25. At this time, all participants are on a listen-only mode. After management's prepared remarks, there will be a question and answer session. I would now like to turn the call over to your host, Praveen Krishna of Investor relations. The floor is yours.

Praveen krishna Krishna
Sify Technologies Ltd - Investor relations

Thank you, Kelly. I'd like to extend a warm welcome to all our participants on behalf of Sify Technologies Limited.

I'm joined on the call today by Mr Raju Vegesna, Chairman M P Vijay Kumar, executive director and Group CFO and Kamal Nath Chief Executive Officer of Sify Technologies.

Following on the results, there will be an opportunity for questions. If you do not have a copy of our press release, please call Weber Shandwick at +1(212) 546-8260, and we'll have one sent to you. Alternatively, you may open a copy of the release at the Investor Information section on the company's corporate website at

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