Subsidiary of Sify Technologies to expand data centres biz with KDCF fund

Sify Infinit Spaces Ltd, a subsidiary of Sify Technologies, an integrated ICT solutions and services provider has entered into an agreement with KDCF for the expansion of new data centres, a company official said on Monday.

Following the agreement, KDCF would invest approximately USD 73 million in the form of compulsory convertible debentures of Sify Infinit Spaces Ltd.

"Sify and Sify Infinit Spaces Ltd, a wholly owned subsidiary of Sify which operates its data centres have entered into an agreement with KDCF on July 20,2023, under which KDCF will invest upto Rs 6000 million (approximately USD 73 million) in the form of compulsory convertible debentures of SIS," Sify Technologies Group CFO and ED, M P Vijay Kumar said.

Sify Inifinit Spaces Ltd would use the proceeds from the issue of the debentures for the expansion of new data centres, including land acquisition, investment in procuring alternate source of power and repayment of debt, he said in a company statement.

Sify Technologies reported a 11 per cent increase in its revenue during the April-June 30, 2023 quarter at Rs 8,547 million.

The capital expenditure was at Rs 1,436 million while the profit after tax dipped to Rs 95 million for the quarter ending June 30, 2023.

"Fiscal discipline will remain the cornerstone of our growth strategy as we scale investments into Data centres and Networks. By judiciously allocating investments and resources, we will seamlessly expand our infrastructure, invest in new resources and build competencies and scale," he said.

"While we expect to see these investments impact profitability in the near term, they should enable us to aggressively pursue digital transformation engagements in the future," he said.

Sify Technologies chairman Raju Vegesna said the government has been consistent in using IT as an enablement tool to implement social measures, and this has contributed to a very mature IT ecosystem.

"Our next phase of growth will leverage this favorable environment by introducing innovative and cost-effective digital services for our customers," he said.