Sify Technologies Q1 profit drops by 30 % to Rs 11 cr

Revenue up by 13 % to Rs 296 cr

Sify Technologies Limited has reported a profit of Rs 11.3 crore during the quarter ended June 30, 2014 as compared to Rs 16.3 crore, a year ago. Revenue rose by around 13% during the quarter to Rs 296.3 crore from Rs 262.8 crore.

Raju Vegesna, chairman and managing director of the company said that "the election of a new government with a decisive majority has sent positive signals to the investing community, increasing expectations that India will return to a higher growth trajectory. We are seeing the first signs of this upbeat mood among our clients, with many of them already looking to expand their infrastructure in India".

He added, company's recent certification for Network Integration and Provisioning puts the company in select providers who now qualify for big-ticket network integration projects, and this puts the company us in a good position to leverage the new opportunities resulting from the more positive investment climate.

M P Vijay Kumar, CFO, added that revenues have shown healthy growth, while the EBITDA has not expanded at the same rate versus the same quarter last year, due to significant expenses on company new DCs and execution of a few large capacity projects which are going live in phases.

"With the additional capacity from our new DCs coming on stream, we will be focusing on monetising our assets to drive further revenue growth in the quarters ahead. We see good potential for continuing to improve asset utilisation as markets gradually recover. So we will be investing primarily in customer-specific opportunities which will help us leverage these assets", said Kumar.

Cash balance at the end of the quarter was Rs 118.1 crore.