Core Insights - Sify Technologies Limited has appointed Dr. Ram Sewak Sharma as a new Director on its Board, bringing extensive experience in ICT and administrative reforms [1][5]. Company Overview - Sify Technologies is recognized as India's leading Digital ICT solutions provider, offering services in Data Center, Cloud, Networks, Security, and Digital services [1][7]. - The company has received multiple Golden Peacock awards for Corporate Governance, highlighting its commitment to ethical business practices [7]. Leadership and Expertise - Dr. Sharma has over four decades of experience in the Indian Administrative Service and has played a significant role in shaping India's ICT policies [2][4]. - He was the founding Director General of the Unique Identification Authority of India (UIDAI), where he was instrumental in launching Aadhaar, the world's largest biometric identity system [3][4]. - His background includes leadership roles in the telecom industry, including Chairman of the Telecom Regulatory Authority of India (TRAI) [4]. Strategic Vision - The Chairman of Sify, Mr. Raju Vegesna, expressed confidence that Dr. Sharma's experience will be a valuable asset as the company aims to strengthen its leadership position across various business segments [5]. - Dr. Sharma emphasized the importance of technology as a catalyst for implementing large-scale social welfare measures, which aligns with Sify's mission to scale its services [6]. Market Presence - Sify serves over 10,000 businesses across various sectors, leveraging its infrastructure of state-of-the-art Data Centers and the largest MPLS network in India [8][9]. - The company has a significant international presence, operating in North America, the United Kingdom, UAE, and Singapore, catering to a diverse clientele [9].

Core Viewpoint - Sify Technologies Ltd. is currently in non-compliance with Nasdaq Listing Rules due to the resignation of Dr. Ajay Kumar from its Board of Directors, which has created vacancies that need to be filled to regain compliance [1][2][3]. Compliance Issues - The resignation of Dr. Ajay Kumar has led to non-compliance with Nasdaq Listing Rule 5605(b)(1), which requires a majority of independent directors, and Rule 5605(c)(2), which mandates at least three members on the audit committee [1][2]. - The company has been granted a cure period to regain compliance, lasting until the earlier of its next annual shareholders' meeting or May 15, 2026, with specific compliance deadlines if the meeting occurs before November 11, 2025 [2][4]. Company Actions - The company is actively seeking to appoint another independent director to fill the vacancy left by Dr. Kumar's resignation and aims to comply with Nasdaq Listing Rules within the specified cure period [3][4]. - If compliance is achieved before the end of the cure period, the company must submit documentation to Nasdaq, including biographies of new directors [4]. Company Overview - Sify Technologies is recognized as a leading integrated ICT service and solution provider in India, focusing on digital and AI solutions to meet the demands of the emerging digital economy [7][8]. - The company operates a robust infrastructure, including state-of-the-art data centers and the largest MPLS network in India, catering to over 10,000 businesses across various sectors [8][9].

Revenue Performance - Revenue for fiscal 2025 increased by ₹ 4,252 million ($49.68 million), representing an 11.93% growth compared to fiscal 2024[336] - Network Services revenue grew by ₹ 1,119 million ($13.08 million), primarily due to increased capacity from existing and new customer engagements[337] - Data Center Services revenue increased by ₹ 3,142 million ($36.71 million) due to new contracts and higher capacity utilization by existing customers[338] - Digital Services revenue decreased slightly by ₹ 9 million ($0.11 million), reflecting a 4% decline compared to the previous year[336] - Revenue from Digital Services decreased by ₹9 million ($0.11 million), primarily due to a ₹410 million ($4.79 million) decline in Application Integration Service and a ₹155 million ($1.81 million) decrease in Cloud and Managed Services, partially offset by a ₹556 million ($6.50 million) increase in Network Managed Services revenue[340] Cost and Expenses - Cost of sales as a percentage of revenues decreased from 62.80% in fiscal 2024 to 62.47% in fiscal 2025[335] - Selling, general and administrative expenses increased to 18.66% of revenues in fiscal 2025, up from 18.13% in fiscal 2024[335] - Total cost of sales increased by 11.35% to ₹24,917 million ($299.00 million), with significant increases in Network Services (11.50%), Data Center Services (21.86%), and Digital Services (4.43%) costs[342] - Operating costs rose by ₹496 million ($5.80 million), driven by higher repairs and maintenance and network operating costs, resulting in a total Selling, General and Administrative expense increase of 15.17%[348] Profitability - Profit from operating activities decreased to 5.66% of revenues in fiscal 2025, down from 6.73% in fiscal 2024[335] - Net profit for the year was a loss of ₹ 1,197 million ($14.06 million) in fiscal 2025, compared to a profit of ₹ 1,000 million ($12.00 million) in fiscal 2024[335] - Net profit decreased to a loss of ₹785 million ($9.50 million), a decline of 564.50% compared to the previous year, with a net profit margin of -1.97%[361] Financial Position - As of March 31, 2025, the company had borrowings of ₹39,184 million ($474.00 million), with ₹7,342 million ($88.00 million) due within 12 months[368] - The company reported a negative working capital of ₹1,106 million ($13.00 million) as of March 31, 2025, despite having cash and cash equivalents of ₹4,671 million ($56.00 million)[365] - As of March 31, 2025, cash and cash equivalents totaled ₹4,997 million in bank accounts and ₹1,761 million in bank deposits, with restricted cash deposits amounting to ₹454 million[373] Cash Flow - Net cash generated from operating activities for the year ended March 31, 2025, was ₹8,647 million (US$101.04 million), an increase attributed to higher trade payables and contract liabilities[374] - Net cash used in investing activities for the year ended March 31, 2025, was ₹12,324 million (US$144.00 million), primarily for data center facilities and renewable energy investments[377] - Net cash generated from financing activities for fiscal year 2025 was ₹4,730 million (US$55.27 million), driven by borrowings of ₹12,894 million (US$150.67 million) and proceeds from share issues[381] Capital Expenditure - Capital expenditure for the year ended March 31, 2025, amounted to ₹15,486 million (US$180.95 million), funded through internal accruals and bank borrowings[385] Investments and Agreements - SISL entered into a Debentures Subscription Agreement with KDCF, receiving an investment of ₹6,000 million (approximately US$72.23 million) for data center expansion and renewable energy investments[372] Revenue Recognition - Revenue from data center services is recognized over time as services are performed, with distinct performance obligations[398] - Revenue from digital services, including cloud and managed services, is recognized as related services are performed, with fixed contracts for a specified period[400] - Revenue from Applications Integration Services is recognized over time, measured by the amount of time/effort spent on a project[406] - Revenue from commissions on electronic commerce transactions is recognized upon transaction completion[407] - The Group allocates transaction prices to performance obligations based on relative stand-alone selling prices[409] - Incremental costs of obtaining a contract are recognized as assets and amortized over the contract period if expected to be recovered[411] - Lease rentals from operating leases are recognized on a straight-line basis over the lease term[413] - Upfront payments for Indefeasible Right of Use (IRU) arrangements are treated as deferred revenue, recognized on a straight-line basis over the term[414] Risk Management - Market risk management is conducted through a corporate treasury department that evaluates and controls market risk exposure[723] - The Group's exposure to market risk is influenced by investment and borrowing activities, as well as revenue generation in foreign currencies[723] Other Financial Information - Other operating income decreased by ₹14 million ($0.16 million), mainly due to a ₹66 million ($0.77 million) drop in Miscellaneous income, offset by a ₹52 million ($0.61 million) increase in interest income[341] - EBITDA increased by ₹806 million ($9.66 million) to ₹7,562 million ($91.00 million), reflecting an 11.93% growth due to increased revenue[353] - Depreciation and amortization expenses rose by ₹860 million ($10.05 million) to ₹5,633 million ($68.00 million), an 18.02% increase attributed to the capitalization of new assets[357] - Finance expenses increased by ₹540 million ($6.31 million) to ₹2,744 million ($33.00 million), primarily due to higher interest on borrowings[360] - Contractual cash flow for long-term obligations as of March 31, 2025, is projected at ₹32,144 million (US$375.60 million) over various time frames[384] - Impairment analysis for trade receivables is performed at each reporting date using a provision matrix based on historical loss rates[424] - Deferred tax assets are recognized to the extent that it is probable future taxable profits will be available against which the temporary difference can be utilized[433] - The company does not engage in research and development activities[386]

Core Insights - Sify Technologies Limited has launched a Pay-per-use model to cater to the increasing demand for AI Cloud Services [1][3] - The company has expanded its portfolio of DGX-Ready Data Centers, now certified for up to 130 KW/rack capacity under NVIDIA's program [2] - The hourly pricing model includes hosting, power, and infrastructure costs, facilitating quicker deployment for GPU Cloud partners [3] Company Developments - Sify's new colocation pricing will be available at its certified data centers in Chennai, Noida, and Navi Mumbai [2] - The CEO of Sify Infinit Spaces Limited emphasized the company's extensive infrastructure and low-latency network connectivity to hyperscale clouds [4] - Sify aims to support the growing AI market in India by removing traditional barriers to AI adoption through its innovative pricing model [4] Industry Context - India is emerging as a key player in the global AI landscape, supported by a deep talent pool and advancing digital infrastructure [4] - Sify's pay-per-use model is positioned to enable global enterprises to leverage India's AI capabilities through scalable infrastructure [4] - The company has a significant presence, with over 10,000 businesses utilizing its services across more than 1,700 cities in India [7]

Core Insights - Sify Infinit Spaces Limited has announced that its new AI-ready data center facilities in Chennai and Noida are now part of the NVIDIA DGX-Ready Data Center program and certified for liquid cooling, following the certification of its Mumbai, Rabale facility as the first in India [1][3]. Company Overview - Sify Technologies Limited is recognized as India's leading Digital ICT solutions provider, offering a comprehensive range of services including data center, cloud, networks, security, and digital services [1][4]. - The company has received multiple Golden Peacock awards for Corporate Governance, highlighting its commitment to high standards in business practices [4]. Infrastructure and Capabilities - Sify's data center deployment solution supports up to 200 KW/rack capacity and complies with ASHRAE's 30 years ambient temperature guidelines, ensuring robust performance for AI workloads [2]. - The company operates state-of-the-art data centers and has the largest MPLS network in India, making it a preferred choice for startups, SMEs, and large enterprises [5]. Market Position and Reach - More than 10,000 businesses across various sectors utilize Sify's integrated services of Data Centers, Networks, and Security, enabling seamless operations in over 1,700 cities in India [6]. - Sify also has an international presence in North America, the United Kingdom, and Singapore, expanding its global service capabilities [6].

Financial Data and Key Metrics Changes - The company remains committed to cost efficiency and fiscal discipline, aligning financial strategies with long-term value creation despite facing headwinds from capital expenditures and increased manpower costs [4] - Capital expenditure is expected to be marginally higher compared to the previous fiscal year [14] Business Line Data and Key Metrics Changes - Network services did not experience a revenue decline, but substantial expenses were incurred for new capacities leased for future business requirements [10] - Data center revenues show a secular growth trend, with two new greenfield facilities recently going live, each designed for a capacity of 30 megawatts [12][13] Market Data and Key Metrics Changes - Demand continues to exceed supply in the market, driven by cloud consumption from Indian enterprises and expanding hyperscalers [16] - In the short term, demand is expected to be driven by international hyperscalers, while medium to long-term growth will likely see increased consumption from Indian enterprises [22] Company Strategy and Development Direction - The company intends to strengthen its unique selling advantages in network, data center, and digital services over the coming years [5] - The focus remains on building resilience, enhancing operational agility, and capturing emerging opportunities in the ICT industry [4] Management's Comments on Operating Environment and Future Outlook - The operating leverage for network and data center infrastructure is positive, with potential for increased margins as capacity utilization improves [18] - Construction timelines have marginally improved post-COVID, but substantial demand for capacity creation means timelines have not changed materially [28] Other Important Information - The interest from capital providers remains stable, with no significant changes in the availability of resources such as land and power [27] Q&A Session Summary Question: What drove the decline in network services this quarter? - There was no revenue decline, but substantial expenses were incurred for new capacities leased for future business requirements [10] Question: Can you discuss the dynamics of data center services and the roadmap for the next fiscal year? - Data center revenues have a secular growth trend, with two new facilities recently going live, and the roadmap includes further capacity expansion [12][13] Question: What are the expectations for capital expenditure in fiscal twenty-six? - Capital expenditure will be marginally higher compared to fiscal twenty-five [14] Question: What is the demand mix expected to be driven by in the future? - Short-term demand will be driven by international hyperscalers, while medium to long-term growth will see more Indian enterprise consumption [22] Question: How has the construction timeline changed in the past six to twelve months? - Construction timelines have marginally improved compared to the post-COVID period, but substantial demand for capacity creation remains [28]

Financial Data and Key Metrics Changes - Revenue for the fiscal year 2023-2024 was INR 35,634 million, an increase of 7% compared to the previous year [21] - EBITDA for the same period was INR 6,756 million, also reflecting a 7% increase year-over-year [21] - Profit before tax decreased significantly by 77% to INR 232 million, while profit after tax fell by 93% to INR 49 million [21][22] Business Line Data and Key Metrics Changes - Revenue from data center colocation services grew by 9% year-over-year [20] - Revenue from digital services decreased by 1% compared to the previous year [20] - Revenue from network-centric services increased by 10% year-over-year [20] - The revenue distribution among business lines was 31% from data center colocation services, 28% from digital services, and 41% from network services [20] Market Data and Key Metrics Changes - As of March 31, 2024, the company operated 1,033 fiber nodes, a 16% increase from the same quarter last year [7] - The company has deployed 7,835 contracted LDR and service points across India [7] Company Strategy and Development Direction - The company is focused on expanding its data center presence and enhancing network infrastructure to support growth [8] - There is a commitment to maintaining proactive engagement with clients to customize offerings based on evolving needs [6] - The company aims to finance the expansion of data centers and invest in digital services through a proposed rights offering [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in India's growth potential and the positive business environment attracting investments [5] - The outlook for the market is optimistic, with deeper customer engagements expected to yield results in the near future [29] - The company believes that AI and ML activities are significant drivers of demand, independent of regulatory changes like the data privacy law [32] Other Important Information - The company has invested a cumulative total of $7.22 million in startups in Silicon Valley as part of its corporate venture capital initiative [7] - Capital expenditure for the year was INR 12,377 million, with plans for similar expenditure in the upcoming fiscal year [8][25] Q&A Session Summary Question: Rationale behind the proposed rights offering - The rights offering aims to finance data center expansion and invest in digital services growth, engaging existing shareholders in the next growth phase [38] Question: Current capacity and future roadmap - Existing capacity is about 120 megawatts, with two new facilities planned to go live, each with a design capacity of 26 megawatts [39] Question: Digital services decline - The decline in digital services was attributed to lower integration service projects, while cloud and network managed services continued to grow [30] Question: Status of data privacy law - The data privacy law has been announced but is not yet effective; its implementation is expected after the new government is formed [31] Question: Impact of data privacy law on business - The company believes that data center and network growth are driven more by AI and digitalization rather than regulatory changes [32]

Core Insights - India's emergence as a global growth hub is a current reality, with projections indicating it will become the third-largest economy by 2030-31, growing at an annual rate of 6.7% according to S&P Global [4] - The growth is supported by liberal economic reforms, a vibrant startup ecosystem, and a demographic dividend, with over 1.2 billion mobile phone users and the second-largest internet user base globally [5] - Government initiatives like 'Digital India' and 'Startup India' have accelerated tech innovation, leading to over 100 unicorns in India, positioning it as a significant growth opportunity for global enterprises [6] Financial Performance - Revenue for the year was INR 39,886 million, reflecting a 12% increase compared to the previous year [8] - EBITDA was INR 7,562 million, also a 12% increase year-over-year [8] - The company reported a loss after tax of INR 785 million, with a loss before tax of INR 286 million [8][13] Business Highlights - Revenue distribution for the year was as follows: Data Center services 38%, Digital services 21%, and Network services 41% [9] - As of March 31, 2025, the company operates 1,137 fiber nodes, a 10% increase from the previous year, and has deployed 1,870 contracted SDWAN service points across the country [9][10] Management Commentary - The Chairman emphasized the importance of cost efficiency and fiscal discipline, while also acknowledging the challenges posed by depreciation, interest expenses, and rising manpower costs [6] - The Group CFO highlighted the commitment to invest in resilience and operational agility to capture emerging opportunities [6] Customer Engagements - Significant new contracts were signed across various sectors, including data center services, digital services, and network services, indicating strong demand for the company's offerings [12]

Group 1 - Sify Technologies Limited will report its unaudited IFRS financial results for the full year ended March 31, 2025, on April 18, 2025 [1] - A conference call will be hosted on April 21, 2025, at 8:30 AM ET, featuring Mr. Raju Vegesna and Mr. M P Vijay Kumar [2] - The conference call will be accessible via phone and will also be broadcast live on the internet [2][3] Group 2 - Sify Technologies is recognized for its corporate governance, having won multiple Golden Peacock Awards [5] - The company focuses on the changing ICT requirements of the emerging digital economy, catering to businesses of all sizes [5][6] - Sify's infrastructure includes state-of-the-art Data Centers and the largest MPLS network, making it a preferred choice for various enterprises [6][7] Group 3 - More than 10,000 businesses across multiple verticals utilize Sify's services, operating seamlessly from over 1,700 cities in India [7] - Sify has an international presence in North America, the United Kingdom, and Singapore [7]

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2024-2025 was INR 10,491 million, representing a 21% increase year-over-year [17] - EBITDA was INR 1,914 million, an increase of 13% compared to the same quarter last year [17] - Loss before tax was INR 119 million, and loss after tax was INR 258 million [18] - Capital expenditure during the quarter was INR 3,343 million, with a cash balance of INR 5,327 million at the end of the quarter [18] Business Line Data and Key Metrics Changes - Revenue split for the quarter: Network Infrastructure Services 41%, Data Center Colocation Services 36%, and Digital Services 23% [15] - Sify commissioned an additional five-megawatt of data center capacity during the quarter [16] - The company has deployed 9,473 units of contracted SDWAN service points, a 14% increase year-over-year [16] Market Data and Key Metrics Changes - The company operates 1,109 fiber nodes across India, marking a 14% increase from the same quarter last year [16] - The demand for GPU as a service is emerging, particularly in the BFSI and manufacturing sectors, although the market is still in a nascent stage [22] Company Strategy and Development Direction - Sify is focusing on cost efficiency and fiscal discipline while investing in capabilities for AI opportunities [12][13] - The company aims to reposition itself to cater to AI workloads, anticipating a new set of enterprise players seeking mature network, data center, and digital services [19] - Sify is adopting IFRS 18 for financial reporting to maintain clarity and consistency [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of India's growing role in the global marketplace and its potential as an AI test bed [10] - The company is optimistic about future growth driven by digitalization and AI workloads, which will require substantial network capacity [34] Other Important Information - The December 2023 numbers were restated following the filing of an amended Form 20-F/A with the SEC [14] Q&A Session Summary Question: Can you provide more details about your GPU as a service offering? - The company is extending its existing cloud platform to support GPU services, with initial interest from enterprises in BFSI and manufacturing sectors [22] Question: Update on data center capacity and upcoming facilities? - Currently, Sify has 120-megawatt capacity, with 110-megawatt contracted. Two new facilities of 26-megawatt each are expected to go live soon [25][26] Question: Significant growth in SG&A, any one-time costs? - Current SG&A levels are expected to remain as the company strengthens its leadership team across businesses [28] Question: Digital Services posted a loss this quarter, what drove that? - The loss was attributed to a revenue mix change and investments in leadership for the business [30][31] Question: What is driving demand in network services? - Growth is driven by investments in wired line infrastructure over the past two years, supporting increased digitalization and AI workloads [34]