SIFY - Earnings call transcript Q4 2021 | Sify Technologies Limited

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Operator

Good day, ladies and gentlemen, and welcome to the Sify Technologies' Financial Results for Fiscal Year 2020 to 2021. [Operator Instructions]. It is now my pleasure to turn the floor over to your host, Shiwei Yin. Sir, the floor is yours.

Shiwei Yin

Thank you, Kate. extend behalf welcome of to our all like on participants Sify would a to warm of I Technologies Limited. the Executive on Kamal joined call Raju by I'm Vegesna, Nath, Chief Officer; M. and today Chairman; P. Financial Chief Kumar, Technologies. Officer Vijay Sify of

will their for an questions. Following opportunity be results, on the comments there

the provided corporate A section by let of sent press copy company's If you Information to Corporate the the at website you obtain a replay Sify please you. the dialing a and or the release we Investor in our website. today’s press copy Alternatively, www.sifycorp.com/investors. by do know access of will of at not release, have Investor through us call on of Information accessing release in maybe the webcast have one the section numbers, may the

IFRS. and accordance of may with other according Some earnings the Reporting the during presented of financial and accordance and results to measures measures most non-GAAP are measures calculated Sify's will in between or GAAP referred made available presentation financial the and Financial to this in call directly comparable measures A include International of website. a financial be Sify's measures. the non-GAAP and release with such comparable non-GAAP and differences such measures in reconciliation calculated on the GAAP most presented Standard,

Private could including a forward-looking seeks conference subject These are out uncertainties such statements those are protections in respect contained variety and could Act of call, release include rather company cause facts certain a company's XXXX. forward-looking completeness in to point that forward-looking Raju business. uncertainties the Sir? on differ described statements, actual and of Securities I Sify the to to those actual Reform inherent materially certain introduce like represent the to that lists Those like differ from With materially developments that we factors, now Litigation to but listed results to this and of and afforded Chairman I’d risks all intended Limited. risks identify competitive time risk to Technologies Before by the to Vegesna, of continue, the to are time not principal SEC risks from statements, are factors company's earnings than Mr. described. intended the to and reports in would from factors cause and releases. statements public results historical

Raju Vegesna

you for on and Thank Thank you, are you us your staying trust, joining Shiwei. call. Good safe. morning, family the

the of of As the wave pandemic. India risk you the in second is COVID know,

with are the governments reintroduced lockdown Our to deal situation.

The first helped wave this time was us has call digital for And around. transformation. increase large a investments in to a to large them that wakeup insulate measure companies their

midsize wish The should the between the public network we and more Now, be that for the invest the merit businesses to soon. is environment, has resilient corporate established, new in situation data calling digital their been public challenge of firmly will secure then ensuring the as transformation work a as blurred network. That a and networks. or the as adopt between see automation normal businesses aggressively. The a security we of the lines said home over

the and the normal. livelihoods be returned old can people the so to And

CEO to our year. Kamal? in the the highlights bring me business past of for our Let Kamal, expand on some

Kamal Nath

in find a these and businesses and at right natural offerings. change pandemic movement application and a environment. all platform, model adoption cloud to accelerated the cloud hybrid Yes, solution cities continuity, Work anywhere all market enable disaster digital grow small, transformation. thank gendering cutting have A be able of Raju. recovery to you, in the large business from cloud plans trends core modernization medium industries their year their across to the into to sustain And

business the right is hyper-scale to Managed would Center services side from is wise Services and our highlight the colocation last trend grew players strengthening over we accelerating like by are I of Data cloud expand Technology by highlights and by now the on important our XX%. data growth offerings. Revenue in one grew on on XX% curve. XX%. hybrid Overall, of on grew center hand, year. Center by Integration the the Data grew other business hand and service India, The other IT Cloud drivers. Segment from providers revenue which and OTT XX% our centric and services growth cloud services

fell year. over While last year. managed services X% Revenue Network wise Application grew fell year. last by by services from from Centric services revenue XX% business over by and and over Segment last Integration by X% voice XX% fell data

transformation public network network varying drivers. are in is opportunities data Let for drivers These digital digital Private accelerated cloud, services, IoT, full pandemic services et cetera, me on and from the lakes, to on-premise cloud. connects growth like expand network with has The data the the by upon edge in the objectives the of digital hyper-scale shifting providers services data growth cloud movement scale workloads Cloud public of generating cloud, This trend hosted versus private triggering degrees adoption, now market which for Collectively, the digital of and in user. transformation these at to cloud and and skills. architecture center enterprises. analytics, centers results The traditional and transformation. primary based of the hybrid balance end service the led trends initiatives for adoption needs

multi-service Oracle. on-premise transformation management and website. as their migration choosing wins Let Cloudinfinit, the entrusted me Sify. are to in signing our AWS, hybrid is of Azure Sify hosting Sify choosing network as management Sify Sify detailed Customers digital with as embrace center categories their on our summarize A Sify, list press They of security. Customers key platforms live partners who our our their for to transformation now Cloud-ready customers partner and and strategy. also they recorded of on partner as like choosing Customers cloud as multi-cloud data choosing they their and data customers center migrate networks. with release, up

CFO, to bring in for elaborate year. Vijay? me past Vijay, Let financial the the highlights on our

Vijay Kumar

Kamal. Thank morning, you, everyone. Good

increase is sum of me end of financial million, XXXX. over been of X% assessment and year the of year was the Let Deferred reasonable the INR year. the year, based the for was the EBITDA income XXXX the XX% for Profit individual tax INR the the for up comprising of at over in future for to of the tax of before future XX% INR XX,XXX increase Cash has profit line the expected deferred of In expenditure INR million, an was of over the tax the with be effective was rate. the XXXX tax year Capital XXX balance million, financial million year. year current tax million. for last on an was the end last tax expense an XXXX INR in Revenue was group. increase certainty XXXX recognized the Net performance for XXXX million. year. INR taxable asset INR year last at million. entities year year

to The despite continue has service that in We healthy digital transformation confidence both spend XXXX, pandemic and challenges increased on show through our to capabilities. the steady EBITDA investing increase people post. tools to growth has growth our the

clients momentum. longer We slightly to to take as expect time to regain conclude contracts take

they organization our in on delivery insulating customer that Our the focus experience. costs is is there manage as services no ensuring and carefully while lag

the resurgent terms We are in will of and conserved use pandemic both data uncertainty of center, economy centric capital and cost these expansion exercise recovery, and the put to due the on and year and to for caution recommend assets did firm plan our this of expansion. be of the Board structure on not commitment payment of dividends our that capital network the cloud Considering advised instead pace and projects. Directors timing

given I over have his quarter Following during companies. business shareholders’ subsidiary now entered of our will hand and business the agreements to Chairman? services into Chairman for transfer to remarks. the approval, wholly-owned center closing business effective data transfer digital for we

Raju Vegesna

the of still themselves solutions, digital one integrated Many provide them didn't the And and transform number outsource Thank you, as first centers, are during A data the adopting and are phase the providing we the cloud like began in renewed adoption. hybrid-cloud end-to-end demand Vijay. the play to as of of the automation, network. center can these good IT to of under of seeking shop, us pandemic and network. who seeing complete cloud towards data a lot exhibiting hybrid enthusiasm transformation enterprises

under to centers, Indian enterprise we looking interest under the see for data centers, and more data network. in of increasing going are our the more enterprises cloud So,

in lot as areas to country. increasing. digital a and is to will are going not CFO to digital cloud the data And our similarly, to we the also we of growing. and So, are platform, our you like conjunction all in center the regions. mentioned, technology transformation And our network, we services developing increase. multi know we network and platform, to we going like centers invest the are are our because centers. all Vijay going continue to demand accelerate continuously invest data are excellent data And continuously we we And in of only the our are data in our the is our across our bandwidth India centers is going And the that invest going also

for call. joining Operator. will I hand for questions. to this So, operator thank you now us the on over

Operator

[Operator our live. question Greg first Burns Company, Sidoti at And your Instructions] from coming line is today is &

Greg Burns

that about agreement for rationale for what or centers? you perspective. What morning. means that business the talk just is for business Good the transfer data Can the

Raju Vegesna

or server it high centers the very the SLAs running people is keep own maintaining manpower hard resources and the required center. three the Greg run to kind rooms, level to are the data up redundancy, up tier because required rational their for their level high with own is data what of

rooms, in So centers, server their data of an instead their that they're adopting data their own living their own centers. outsourcing building more having of own or

we where center are that of usage. lot seeing is So the a data

India scale. using people the major and hyper-scalars, hyperscalers so have started their all hyperscalers Second, cloud adoption we and the are in the with

model which exponential with a with cloud And and one adoption, growth the the committed CP completely hybrid at we the So hyperscalers, are created create to people XXX% of which hyperscalers. Cloudinfinit, time, creating platform, solutions, seeing for property, same the hyperscalers. hybrid we not helpful the which intellectual are is can people where in

that the So, across see we and adoption the hybrid the center, and data cloud where model. is hyperscalers

Greg Burns

Vijay was asking help about for business data agreement rationale demand. Okay, thanks. on that just subsidiaries. color more or to to you means understand the me transfer wholly-owned you what that Thanks I Could there? moving mentioned mentioned, you're the centers

Vijay Kumar

as the digital contrast, are in is intensive. and fact given you that IP And know, they the center involves services Greg, tools. the LED businesses scaling, data people are and business capital and more

given and we of believe should which that focus, different create customer So both we to subsidiaries. businesses, these more bring companies the is delivery are time in independent wholly-owned that for it mechanism, two

a any businesses consolidated to a and companies mean level, they become organizationally, So the different, but help faster at don't larger grow pace they at overtime.

Greg Burns

great. Okay, Thanks.

CapEx you for year. the year, In terms What is for for investments fiscal projection of the your year? full the next mentioned next for

Vijay Kumar

be done million disturb assuming pandemic what by in year had expected what invest than creation, previous than be able went We year, capacity about more little year. we we we does much last not had the of which XXXX to spent much we more the should to invested INR

Greg Burns

service we relative maybe we then margin digital bit given should how maybe transformation think on and tools next Expecting or spending or little investing that? mentioned Okay. should also bit more help a to the And capabilities. EBITDA for about year? spending How contract it about to little think a people in to your the you

Kamal Nath

scale. forward-looking. should in witnessed we with a the period you maintain But far EBITDA the don't have now, different gradually implication. see as on and visibility revenue. nonlinear we able margin growth, be improving over pandemic year-on-year to a as that better of I becomes And extreme with current growth EBITDA has we we only our have time been EBITDA margins get had have But sound unless want so as should to much a the

Greg Burns

I then And lost the train my of terms in of Okay. -- thought.

on centers, give terms throughout update maybe can additional capacity just in capacity existing your data an utilization you is bringing on and year? the network there your the for of So, us plans

Kamal Nath

picture. said the That with completely we COVID being give cannot situation, current

of four year for XX this to in and our the months, We readiness this building continue the is way overall we And have of we think, much growth way transformation what more to what the is those data other year and and be years, only or is But the centers we we could an itself. change could we India, digital as things accelerated have because process see the we but a this plan operation. have, center we bring see great organization, I the planning five is data next in today data in will and XX are for are in lockdown centers, what four four current the situations data in growth the transformation three India. the as started bad, depending COVID one my digital times next is thing center upon the

Greg Burns

All And is extending. impacting terms project then mentioned cycle Okay. it is in you times right. business, more how COVID like of your

cloud So until slowing side do business are are start of growth, services the more see data little technology businesses on going measures is integration relieved? that to a bit maybe some to lockdown maybe its the maybe and impact or centers, you

Raju Vegesna

also working. little need lockdown this are and business. are way the still this keep These But lockdown soon. the slow they down they're into the still to general, the But banks operate, up Because over transformation overall slow bit. time, the a digital thing that running hoping more situation. digital with But moving organization same in down the projects will at will will

one a physically present they technologies adopt new the of to be as kind it maybe thing. need company, you way, stuff, since So make to digital

as COVID this we a growth, what is see the to not overall us it clear challenges but So at point. is

Greg Burns

great. Thank right, you. All

Operator

Thank you.

Jon question RBC. from next at today Our coming is Atkin

Your line is live.

Jon Atkin

Thanks.

equipment just part Indian the enterprises that capacity, the procuring of activity shifting of of the level kind in and and How hyperscalers is interested continuing and International mix demand between hyperscalers? theme, of So change Thanks. seeing that maybe you're there any on terms is in data center in the in in the or India? either moving

Raju Vegesna

the the we well, think, every that before public time, at hybrid seeing means demand, I same hyperscalers, hyperscalers are the and was are same growing accelerating the clouds, the by month-on-month. increasing. very of adoption there Similarly, Jon, of So enterprises also the what adoption the Indian

formula, or adoption, we the So will maybe this months of COVID. XX-XX XX-XX kind it may couple the and seeing don't are equation grow that between public a and we nice adoption. that we’ll in probably slow the of changing continuously we And cloud. we down don't and because growth, and I see think of clouds that versus But hyperscalers private see hybrid

continue. adoption we’ll I think that

for the will the demand which and that As the adoption grow continuously, transformation, adoption early centers for backbone data growing, hybrid very the is of the stages the centers the will see digital demand the continue data digital is India for continuously we of centers and the the because still cloud. transformation, is in data

Jon Atkin

do your a wondered is or services network it assess the there Okay attraction benefit or benefits of specifically couple does Or center Or And an really at point, it of ago, how how the that data economic early impact? the your months weeks with that? benefit, is announcement create but too or it think business? maybe and to we I it just this business? AMS-IX. more like Is for does of kind marketing about

Vijay Kumar

solutions of what a said It's versus and Second above, our our numbers the too marketing. How early is our just benefits assess so provide what network, view, with but integrated is, who it's you centers. to centers data is all do the people the data you data center? market point connecting

see look a cloud at us overall, data center, not just So, plus a I network. is it is, center means, -- cloud gives the data way

data and the integrating our for strategy centers data a going position plus the both is that network. centers, with network, to Sify the overall the So offer unique with

and of it going make said, more I technologies service, are or to more an to just we those kind a want we like enterprise, instead of to vanilla just Indian player, the be integrated service. providing for So poll bring register

Jon Atkin

international about Indian as projects earnings data to a finally, capital center partners, has these call, you businesses, given then wanted Sify? last some about do there can partnerships, intensive since that conglomerates be. with think, you and And think with develop possible I just How the ask even for how ones, partnering to option been recent

Raju Vegesna

There partnership opportunities is coming. are always

far is looking financial our any we don't continuously mentioned, we loans. for the also center as So invest who has procuring And to have statements, data partner a current Vijay for proposition. Sify the -- what we required, value good are the as the to is CapEx Kumar challenge value And going required. we look always are the brings is

continuously we're are and come with engage open, us. we and So, people

So, we of right are looking this partners kind for game. in

XX we themselves established the data we far they're are the of provider, the and provider validate centers, serving tier are trying three data so centers years, are new hyperscalers we data And center first we coming, and we be center for data some doing, players in India. the India, data centers, player last a three in XX have we data are center the but because serving are could to in

and have so the India. we insurance companies And and most -- are banks servicing in we of

an brand center So for don't business. us, international we our validate need data to

So that's what compared a the players to validate to the themselves trying data some new different center player. of is as

Jon Atkin

much. you very Thank

Operator

you. Thank

closing Do queue further you to comments this finish would the have We any with? have no questions time. in like at you

Raju Vegesna

to lost its during your else. entire family, up and to Thank Thank wear protect the have yourself mask who offer condolences time. people for Sify Please dear you. The and you ones everyone continue pandemic.

Operator

and this conclude ladies does today's you, gentlemen, Thank event.

you this for You a Thank time and wonderful your may lines at participation. disconnect have day. your

Sify Technologies Limited (SIFY) 7 May 212021 Q4 Earnings call transcript