Sify Technologies net profit drops by 15 %

Company reports 26 % growth in revenue

Sify Technologies has reported a 15% drop in net profit to Rs 9 crore net profit during the quarter ended September 30, 2014 as compared to Rs 10.6 crore, during the same period last year.

Revenue for the quarter ended September 30, 2014 was Rs 316 crore, an increase of 26% over the same quarter last year, which reported at Rs 250.5 crore.

Raju Vegesna, Chairman and Managing Director commented that the recent network integration project completed for India's Department of Posts has helped the company to become a regular contender for large-scale IT refresh projects.

"In an environment that is just recovering from recession, that should help us give a head start in future business," he said.

Kamal Nath, CEO of the company added the company has seen significant traction among customers for its Data Centre Transformation services. With the new government firmly in place, the company is also also seeing quicker decision making among the Government and PSUs.

"Our order books reflect deeper engagements. The composition of our major client projects is also changing, with multiple services, longer tenures and earlier engagement, long before the change is due," he said.

M P Vijay Kumar, CFO, Sify Technologies said while the company is seeing consistent revenue growth, there has also been an increase in company's expenditures, which has created some pressure on the company's net profit.