Financial Data and Key Metrics Changes - Revenue for Q1 FY 2025-2026 was INR 723 million, representing a 14% increase year-over-year [11] - EBITDA was INR 2,111 million, an 18% increase compared to the same quarter last year [12] - Loss before tax was INR 322 million, and loss after tax was INR 388 million [12] Business Line Data and Key Metrics Changes - Revenue split for the quarter: Network Services 41%, Data Center Colocation Services 37%, Digital IT Services 22% [10] - 8.6 megawatts of additional data center capacity was commissioned during the quarter [10] - The operational capacity available for sale reached 138 megawatts [15] Market Data and Key Metrics Changes - Sify has deployed approximately 9,473 contracted SD WAN service points across the country, with a 14% increase in fiber node services quarter-over-quarter [11] Company Strategy and Development Direction - The company is focusing on enabling AI workloads and attracting forward-thinking enterprises [12] - There is a commitment to cost efficiency and fiscal discipline while investing in future-ready capabilities [10] - The shift towards annuity revenues in the Digital IT Services segment is aimed at long-term growth [42] Management's Comments on Operating Environment and Future Outlook - Management believes India will be a growth engine for digital infrastructure, driven by government policies and a vibrant innovation ecosystem [7][8] - The company anticipates that results from investments made over the last two years will start to flow in within the next 12 to 18 months [26][45] Other Important Information - The company is evaluating various sources for raising capital, including potential IPOs for its digital services [40] - The digital services segment is transitioning from project-based revenues to recurring annuity services, which may initially result in flat top-line growth [42] Q&A Session Summary Question: What is the current operational capacity after the recent additions? - The operational capacity is now 138 megawatts after the addition of 8.6 megawatts [38] Question: What are the plans for new data center projects? - Two greenfield data center projects in Mumbai are under construction, each with a design capacity of 52 megawatts [17] Question: Can you explain the pay-per-use colocation AI model? - The model allows clients to bring their own GPUs and utilize Sify's facilities on a pay-per-use basis, with interest being shown from global clients [20][22] Question: When can we expect to see profitability improvements in the digital services segment? - Management expects to see losses shrink and operating performance improve over the next 12 to 18 months [45] Question: What is the outlook for EBITDA margins? - The data center business has an EBITDA margin of approximately 45%, while the network business is around 18% [55]

Sify Technologies Limited (NASDAQ:SIFY) Q4 2024 Earnings Conference Call April 22, 2024 8:30 AM ET Company Participants Praveen Krishna - Head of IR Raju Vegesna - Chairman, CEO & MD Kamal Nath - CEO M. P. Vijay Kumar - Group CFO & Whole-Time Director Conference Call Participants Greg Burns - Sidoti & Company Operator Good morning, everyone, and welcome to Sify Technologies Financial Results for the Fourth Quarter and Fiscal Year 2023 to 2024. At this time, all participants have been placed on a listen-only ...