Sify(SIFY) - 2018 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for the year was INR 21,547 million, an increase of 4% over the previous year [27] - EBITDA for the year was INR 3,122 million, an increase of 9% over the previous financial year [27] - Net profit for the year was INR 1,069 million, an increase of 16% over the last financial year [27] - Capital expenditure during the year was INR 4,051 million [28] - Cash balance at the end of the year was INR 2,248 million [31] Business Line Data and Key Metrics Changes - 25 prominent customers signed contracts for workload migration to multiple cloud platforms [15] - 21 major logos signed for greenfield cloud implementation across various verticals [16] - 16 major sign-ups for disaster recovery services [17] - 962 new customers added in telecom services across various sectors [20] - The online assessment business conducted over 3.5 million cloud-based tests [20] Market Data and Key Metrics Changes - Data center centric IT services accounted for 49% of overall quarterly revenue [50][51] - Significant expansion of next-generation fiber access networks across four key markets [21] - Expansion of Global CloudConnect platform to include private connections to Google Cloud in India [22] Company Strategy and Development Direction - Focus on solicited disruptive contracts to build a unique portfolio of knowledge-driven cloud and managed services [10] - Emphasis on digital transformation services and integration of applications on the cloud [36] - Cautious approach to technology integration services, prioritizing projects that align with data center and cloud services [40] Management's Comments on Operating Environment and Future Outlook - Management noted a distinct maturity in the profile of services being contracted, indicating a positive market direction for Sify [9][37] - The company is committed to investing in capacity and tools for managed services despite the need to maintain healthy margins [59] - The personal data protection bill is still in draft stage, with expectations for progress post-elections [64] Other Important Information - The board recommended a dividend of 12% from the paid-up capital, subject to shareholder approval [30] - Total debt at fiscal year-end was approximately $44 million [75] Q&A Session Summary Question: Can you elaborate on the change in market demand and its impact on business? - Management indicated increasing demand for digital transformation projects, shifting revenue profiles towards cloud and managed services [36] Question: What was the growth rate for application integration services excluding the large government contract? - Management reported a year-on-year growth of 17% for application integration services, excluding the large contract [42][43] Question: What percentage of revenue was data-centric relative to telecom-centric for the quarter? - Data center centric IT services accounted for 49% of overall quarterly revenue [50][51] Question: What is the outlook for margins in 2019? - Management expects improvement in margins by a few hundred basis points while continuing to invest in capacity [59][61] Question: What is the status of the personal data protection bill? - The bill is at the draft stage and is expected to progress after the new government is formed [64]