Sify Technologies Reports Robust Growth in FY 2023-24

MANAGEMENT COMMENTARY

Mr. Raju Vegesna, Chairman, said, “It is comforting to witness India's growth amidst global challenges. Our people possess remarkable skills, driving progress despite disruptions. International business leaders share our optimism, recognizing India's potential. Their confidence reflects positively on our business environment, attracting investments and fostering partnerships. This growth isn't just for businesses—it benefits our entire nation, creating jobs, improving livelihoods, and driving development. 

Despite geopolitical disturbances, India stands strong, powered by our abundant talent and unwavering spirit. Together, we're shaping a brighter future for generations to come.
I am committed to fostering this growth, ensuring that India continues to thrive on the world stage and Sify has a central role to play".

Mr. Kamal Nath, CEO, said, “As Enterprises advance their digital transformation and digitalization goals, they are strategically realigning their digital architecture across applications, hybrid cloud, network, security, and edge environments. Customer experience, business continuity, cybersecurity, application modernization, and AI enablement are the pivotal catalysts driving this recalibration.

Our robust infrastructure investments and comprehensive services portfolio are structured to precisely address customer objectives. Concurrently, we maintain proactive engagement with clients, identifying their distinct requirements and customizing our offerings to align with their evolving needs”.

Mr. M P Vijay Kumar, ED & Group CFO, said, “Our three businesses have unlocked tailored growth avenues, attracted targeted investments and fostered valuable partnerships. Our investment philosophy encompasses expanding Data Center presence to new locations for sustained growth, increasing capacity at existing facilities to meet immediate demand, and fortifying network and cloud interconnectivity. Simultaneously, we're prioritizing the expansion of our workforce, equipping them with essential skills, tools, and processes to drive innovation and efficiency. 

All the while, we remain steadfast in our commitment to cost-effectiveness and fiscal prudence.

Cash balance at the end of the year was INR 5,835 Million”.

BUSINESS HIGHLIGHTS  

The Revenue split between the businesses for the year was Data Center services 31%, Digital services 28% and Network services 41%.

• As on March 31,2024, Sify provides services via 1033 fiber nodes across the country, a 16% increase respectively over same quarter last year.

• As on March 31, 2024, Sify has deployed 7835 contracted SDWAN service points across the country. 

• At close of financial year, Sify has invested a cumulative of USD 7.22 million in start-ups in the Silicon Valley area as part of our Corporate Venture Capital initiative.

CUSTOMER ENGAGEMENTS

Among the most prominent new contracts during the quarter were the following:

Data Center Services

• A large private bank signed a multi-year contract for colocation services. 

• A multinational investment management firm moved from the competition to Sify’s data center.

• The government’s premier financial transaction enabler and a large private bank signed a multi-year contract to shift from their captive data center to Sify’s data center.

• An oil refining multinational consolidated their multiple captive locations to Sify’s data center.

• A privately held international stock broking firm entering India, contracted to expand their data center capacity and connect to the central stock broking platform.

Digital services 

• A subsidiary of one of India’s oldest multinationals, a leading global provider of solutions for industrial enclosures, and a leading power distribution and contract manufacturing company in the FMCG sector renewed their contracts for upgrading their SAP platform.

• Multiple insurance majors, an aviation regulatory body, a chemicals conglomerate, a private bank, a diversified industrial house and a State government department contracted to move from their on-premise DC to Sify’s cloud platform.

• A private steel major, a multinational energy major, an NBFC, a co-operative bank and one of the largest co-operatives signed up for greenfield cloud implementation.

• Multiple insurance players, a private equity firm, a state government’s e-governance body and a pharmaceutical major signed up for DRaaS, PaaS and IaaS services.

• Managed services contracts include an international steel major, a power generating player, a private insurance company, a logistics player and global investor in sustainable infrastructure.

• A state government signed a muti-year contract to build an on-premise DC and manage its operations.

• A multi-product platform for global leaders in Banking, Insurance, and Capital Markets, a health platform, a white goods major, a broking regulator and a retail major signed up for managed security services.

• New contracts for Sify’s supply chain platform include an industrial adhesives major and an international player in power electronics.

• A subsidiary of the Central bank signed up for managed services for their Wi-Fi infrastructure.

 Network Services

• One of the largest public insurance companies contracted for MPLS and SDWAN services.

• A multinational electronics contract manufacturer setting up new locations in India contracted to build their network, IT and security infra.

• Sify added one more customer from a neighbouring country through the Terrestrial Network.

• A state government division and an electricity distribution company signed up to connect multiple locations across north-east India.

• Sify signed a transformation deal for network consolidation and SDWAN with one of the oldest manufacturing companies in the country.

• Sify provided a unique low latency solution to one of the world’s largest international banking and insurance companies.

• A national stock broking platform signed up to expand connectivity to multiple locations.

FINANCIAL HIGHLIGHTS