Sify's Q4 net profit jumps over 6-fold to Rs 90 cr due to digital changes

IT company Sify Technologies posted over a six-fold jump in profit at Rs 90.4 crore for the March ended quarter due to rapid digital transformation of business amid COVID-19 pandemic.

The company had posted a profit of Rs 13.4 crore in the same period a year ago.

The revenue of Sify increased by 19.5 per cent to Rs 686 crore during the quarter under consideration from Rs 573.6 crore in the corresponding period of the previous financial year.

"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 wake-up 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," Sify Technologies chairman Raju Vegesna said in a statement.

For the year ended March 31, 2021, the company's profit more than doubled to Rs 158.5 crore as compared with Rs 70.6 crore in the previous financial year.

The 2020-21 annual revenue of Sify increased by about 6 per cent to Rs 2,432 crore from Rs 2,295.2 it recorded in the previous fiscal.

"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 changing environment," Sify Technologies Chief Executive Officer Kamal Nath said.