Sify slips into the red on debt provision

Internet and e-commerce services provider Sify has reported a net loss of $1.27 million (Rs 5.15 crore) under US GAAP for the quarter ended June 30 compared with a net profit of $1.54 million in the corresponding quarter of the previous financial year.

The company reported a net loss of $2.27 million in the previous quarter. The company's US GAAP revenues were $34.6 million for the quarter ended June 30 compared with $32.5 million in the same period of 2006, rising 6.5 per cent. The sequential growth in revenues over the previous quarter was 1.5 per cent.

Net loss for the quarter was owing to provision for doubtful debts (PDD) on overdue amount carried on the books to the tune of $1.28 million during the quarter, an exchange loss of $0.4 million incurred on account of the rupee appreciation compared with exchange gain of $1.1 million in the same quarter of the previous financial year, according to a company statement.

Cash profit for the quarter, in Adjusted EBITDA terms, was $1.66 million ($4.55 million). Sify ended the quarter with a cash balance of $46.7 million after capital expenditures of $6.71 million during the quarter.

During the third quarter, the corporate services segment comprised a major chunk of revenues, contributing $21.9 million to its total revenue, followed by the retail internet access services segment contributing $10.2 million. The rest was contributed by the interactive services segment and other services.