Sify Expands Data Center Capacity and SDWAN Network

Mr. Raju Vegesna, Chairman, said, “The enterprise landscape in India is undergoing a transformative evolution, driven by a confluence of regulatory advancements, innovative business models, and robust infrastructure development. As we navigate this dynamic environment, it is clear that India is emerging as a global hub for Information and Communication Technology (ICT).

Regulatory frameworks are becoming increasingly conducive to business growth, allowing for an ecosystem that encourages innovation and investment. Initiatives such as Digital India and the Make in India campaign have streamlined processes and incentivized entrepreneurship.

This shift is not just about adopting new tools; it’s about reimagining how we conduct business and deliver value to our stakeholders”.

Mr. Kamal Nath, CEO, said, “As enterprises embark on their digital transformation journeys, they are reshaping their IT frameworks to integrate a diverse array of innovative solutions. The overarching goal remains the same: to enhance user satisfaction, ensure operational resilience, and safeguard digital assets.

To support these ambitions, we are making significant capital investments and expanding our range of offerings. Our strategic focus on delivering innovative outcomes through our comprehensive suite of infrastructure and managed services uniquely positions us to partner with businesses during this pivotal transformation”.

Mr. M P Vijay Kumar, ED & Group CFO, said, “We draw your attention to Sify adopting the new standard of International Accounting Standards Board’s recent issuance of IFRS 18 (Presentation and Disclosure in Financial Statements) starting with the last quarter ending June 30, 2024. By adopting the new framework, we seek to maintain clarity and consistency in our financial communications. Importantly, while our presentation may change, there is no alteration in total income or net profit.

We also remain committed to cost-effectiveness and fiscal prudence. Our ongoing investments reflect a forward-thinking perspective that anticipates market trends. These efforts will positively impact our net profit in the near future. However, it is essential to acknowledge that these investments also lead to increased depreciation and interest costs, which we account for transparently in our financial statements.

We are also actively scaling our sustainable practices across all our businesses, with particular emphasis on our Data Centers. This commitment to sustainability is not just a compliance measure; it is integral to our long-term strategy and resonates with the broader digital transformation initiatives being pursued by industries across India.

The cash balance at the end of the quarter was INR 7574 Million”.

BUSINESS HIGHLIGHTS  

• The Revenue split between the businesses for the quarter was Data Center colocation services 32%, Digital services 32% and Network services 36%. 

• During the quarter, Sify commissioned 6.5 MW of Data Center capacity in Mumbai. 

• As of September 30, 2024, Sify provides services via 1069 fiber nodes across the country, a 12% increase over same quarter last year.

• Sify has now deployed 10057 SDWAN service points across the country.

CUSTOMER ENGAGEMENTS

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

Data Center Services

• A global security firm and a nationalized bank migrated from the competition’s Data Center to Sify Data Center. 

• The national postal network signed up to expand their DR at Sify’s premises.

• One of the largest private banks signed up for modernization of the DC to DR network path.

• The country’s premier financial transaction settlement assurance platform and a nationalized bank signed up to expand their DR at one of Sify’s locations.

• Sify extended its leadership in AI technology by becoming the first Data Center provider in India to achieve NVIDIA DGX-Ready Data Center Certification for Liquid Cooling at its Rabale campus.

Digital services 

• A private mobility player, a co-operative bank, an EPC major, an automation company and an ITeS company signed up to migrate their on-premise DC to our Cloud platform.

• One of the largest housing finance players, a paints major and a couple of steel manufacturers contracted Sify to build greenfield cloud platforms.

• Multiple players across housing finance, logistics, health, securities and asset management signed up for services like DRaaS, PaaS and IaaS.

• A state government’s technology mission signed up for on-prem commissioning of private cloud.

• A state government’s biotechnology promotion platform, a private healthcare and power transmission player signed up for on-prem Security build services.

• Multiple national players across real estate infrastructure, retail, logistics and healthcare signed up for SAP services.

• A state government training platform and another distribution platform signed up for online assessments. 

Network Services 

• One of India’s largest private banks and a retail MNC signed up for Sify’s Global Cloud interconnection.

• An India-centric Internet exchange contracted for establishing connectivity in Tier 2 cities.

• One of India’s largest exchanges signed up for WAN across their backbone network.

• A pharmaceutical MNC in India contracted for Low Latency Internet services.

• One of the largest financial transaction services players contracted for Low Latency Data Center Inter-Connect services.

FINANCIAL HIGHLIGHTS

Management-defined Performance Measures (MPMs)

Sify uses Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) as the management-defined performance measure in its public communications. This measure is not specified by IFRS Accounting Standards and therefore might not be comparable to apparently similar measures used by other entities. 

Management believes adjusting operating profit for these items provides comprehensive information of the company’s operating performance.

Reconciliation with Management-defined Performance Measures:

(In INR millions)

Segment Reporting:

(In INR millions)

Equity and Debt:
(In INR millions)