Sify Technologies reports 48% growth in Q2 profit

Revenue up by 18% in Q2

Sify Technologies Limited has reported a 48 per cent growth in net profit during the quarter ended September 30, 2015 at Rs 13.3 crore as against Rs 9 crore, a year ago.

Revenue for the quarter was Rs 371.5 crore, as compared to Rs 316 crore a year ago, an increase of about 18 per cent.

CAPEX during the quarter was Rs 66.9 crore.

Raju Vegesna, chairman of the company said: "Our sustained efforts at building a comprehensive ICT ecosystem is reflected in the results this quarter. Within India, our broad portfolio and cost competitiveness places us in a strong position to win multi-year contracts for managed services among Enterprises looking for a technology refresh."

"The new government's call for a digital revolution is finding resonance among the different agencies, who are adopting better methods of information dissemination through IT. State governments are also becoming increasingly aggressive in their push for IT with demand for multiple services. While Sify's focus remains primarily on the Enterprise market, this renewed interest from the government sector is pushing the overall demand for IT services forward, and Sify is well-positioned to take advantage of these opportunities," he added.

He said that the North American market is beginning to gain traction with increasing references for its managed services. "Our strategic alliance with Fujitsu, announced last quarter, will give us access to more clients and deeper engagements. In time, we should see this complementing our Indian market position," he said.

Kamal Nath, CEO, said, during the second quarter the company has also seen growth in public sector business along with enterprise segment, which is a positive sign. "Our integrated ICT services continue to lead our growth along with Infrastructure transformation projects."

M P Vijay Kumar, CFO, said: "We have continued the positive trajectory over the past several quarters resulting in a healthy EBITDA and improved Net Profit. This has come from the increased utilisation of our assets on the ground and good market demand for our services. That said, the aim for the remainder of this year continues to be to optimise our assets while keeping a tight grip on our costs."