Sify in black, posts $1.49 mn profit

Sify has reported a net profit of $1.49 million for the second quarter ended September 30 compared to a net loss of $1.34 million in the corresponding quarter of the previous fiscal.

The company's revenues grew by 17.9 per cent to $30.10 million from $25.53 million during last fiscal. During the previous quarter of this fiscal, the company reported a net profit of $1.36 million and a revenue of $28.69 million.

Gross margins for the second quarter improved to 48.9 per cent from 43.8 per cent the same quarter last year, and 47.3 per cent in the previous quarter. It's cash profit, in adjusted EBITDA terms, grew three fold from $ 1.18 million in the same quarter last year to $ 3.55 million for the current quarter, said a company statement.

Sify ended the quarter with a cash balance of $ 50.39 million after capital expenditure of $ 1.76 million during the quarter.

According to Durgesh Mehta, chief financial officer, the two quarters have set the stage for profitable growth with better management of bandwidth and other overheads costs.

In fact EBITDA for the previous quarter included forex gains of $ 0.96 million as compared to $ 0.01 million in the current quarter. Adjusted EBITDA this quarter excluding forex gains has therefore improved from $ 3.06 to $ 3.54 million.

Raju Vegesna, board chairman and chief executive officer and managing director, Sify that the company was beginning to see the effects of the business analysis and structuring conducted during the first two quarters of this year in the form of improved margins and better cost management.

The full benefit of these changes will be more evident six to nine months from now as the company was leveraging greater synergies across businesses to ensure profitable growth.