Sify(US:SIFY)2025-07-18 13:30Financial 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]