Sify(US:SIFY)2024-04-22 13:50Financial Data and Key Metrics Changes - Revenue for FY 2023-2024 was INR 35,634 million, an increase of 7% compared to the previous year [14] - EBITDA for the same period was INR 6,756 million, also reflecting a 7% increase year-over-year [14] - Profit before tax decreased by 77% to INR 232 million, while profit after tax saw a significant decline of 93% to INR 49 million [14] Business Line Data and Key Metrics Changes - Revenue from data center colocation services grew by 9% year-over-year [12] - Revenue from digital services decreased by 1% compared to the previous year [12] - Revenue from network-centric services increased by 10% over the last year [12] - The revenue split among business lines was 31% from data center colocation, 28% from digital services, and 41% from network services [12] 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 [13] - The company has deployed 7,835 contracted LDR and service points across the country [13] Company Strategy and Development Direction - The company is focused on expanding its data center presence and increasing capacity at existing facilities to meet demand [15] - There is a commitment to fortifying network infrastructure and cloud interconnectivity [15] - The company aims to enhance its workforce capabilities and competencies to drive innovation and efficiency [16] Management's Comments on Operating Environment and Future Outlook - The management highlighted the positive business environment in India, which is attracting international investments and partnerships [9] - The outlook for digital services is optimistic, with deeper customer engagements expected to yield results in the near future [25] - The company believes that AI and ML activities are significant demand drivers, independent of regulatory changes like the data privacy law [29] 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 [13] - The cash balance at the end of the fiscal year was INR 5,835 million [16] 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 [19] Question: Projected CapEx for the coming fiscal year - Projected CapEx will be similar to the last two years, averaging around INR 1,400 crores [20] Question: Data center roadmap and new facilities - Two greenfield projects are set to go live in Fiscal 2025, one in Noida and another in Chennai, with additional capacity planned for Mumbai [21][22] Question: Current operational status of Tower 5 in Mumbai - The Tower 5 facility has a total capacity of 38 megawatts, with nearly two-thirds expected to be occupied by the end of March 2025 [23] Question: Performance of network services in the last quarter - The network business showed organic growth, with continued investments planned for expanding network infrastructure [24] Question: Factors driving the decline in digital services - The decline was attributed to lower integration service projects, while cloud and network managed services continue to scale [26] Question: Status of the data privacy law - The data privacy law has been announced but is not yet effective; rules are expected to be issued after the new government is formed [28] Question: Impact of the data privacy law on business - The company believes that data center and network growth are driven more by AI and ML activities than by regulatory changes [29]