SIFY - Earnings call transcript Q3 2022 | Sify Technologies Limited

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Operator

Good day, ladies and gentlemen. And welcome to the Sify Technologies Financial Results for Third Quarter and Fiscal Year 2021-2022. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions-and-comments after the presentation. It is now my pleasure to turn the floor over to your host, Praveen Krishna. Sir, the floor is yours.

Praveen Krishna

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

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

If today’s at have the release, at Sify website call press of the release accessed www.sifytechnologies.com/investors. please copy to by corporate sent the call not you. you Information we may Grayling company’s of at the will in maybe section corporate dialing replay provided accessing of obtain the press on have in a of on Investor Information do and in by copy our a A XXX-XXX-XXXX or one Global section website. the Alternatively, Investor you the numbers webcast release

the in International during the the or presented results Reporting measures Sify’s financial will such and A presented accordance measures, the between comparable with and GAAP of made financial measures non-GAAP be this calculated on non-GAAP with of may differences previous in the of for IFRS and presentation a measures release GAAP will financial measures, somewhat most to of available the years. calculated most comparable and non-GAAP such website. to call and and directly GAAP Financial reconciliation in accordance Sify’s include according referred from earnings the the differ announcements measures. made and Standards year are Some

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

Raju Vegesna

for you all Thank you, Thank Good of you. Praveen. joining morning.

governance all converge IT the search continuity, the -- from a seamless of third Hyperscalar both services the has business and a Network up convinced has now with better and Indian in pandemic, proactive the country importance are growing IT of through business local Data declared startups bond services investments startups, infrastructure Digital are of Sify cloud-based cloud local cloud the services. infrastructure. bond are been Centers is Indian to India place we businesses across essential the aggressively since currently scaled the -- Given native phase experiencing that to output. processes led experience. the the

all know, time you right scale for WAN, the Sify core seeing are As as to up at the is the this we as capture to opportunities. digital these

quarter. Let business Kamal? the CEO, me for some our highlight bring in of Kamal on expand to Nath, past the

Kamal Nath

Yeah. fitment of bouquet digital Services natural see Thank cloud-based a business services demands. first Digital our Raju. Transformation Enterprises their as evolving for you, for looking

our the for services cloud@core seeing upswing as demands. delivery for in demand model right an these We are

our increases Data Data attractiveness Our successful Enterprise of Hyperscalers a Center our and the delivery to capability front of the for and Centers endorsement clients. agility is our strong on

work learning market should demands pandemic, these to continue. the around the With

business our to expand like and summarize previous would with quarters, As the highlights performance. I on business

to center corporate capital As expansion announced earlier data addition Valley Navi outlay INRX,XXX has capacity building region. in startups Sify capital the part the toward outlay in to Sify for service. committed continues million Mumbai in This INRX,XXX fresh of DC invested Silicon capital venture the Services. Managed for of is for Technologies area. the US$XXX,XXX during Sify our the in a further Magic initiative, of in of quarter of as million the to execute ability recognized quality the same completeness expansion leading reach recognition region. to Gartner the in to and network. quadrant a the grow is vision The for has Niche business Player superior of capacity of Network been XXXX The

services and quarter across stations same last respectively, As on provides Sify XXXX, December, fiber nodes base X% country, increase, a and the year. over the via XXX XXst X,XXX wireless XX%

XX% part customer from Sify across Centric quarter Experience on service our revenue release Services the the network. businesses A XX%, in deployment services full at and asset your Project, at now of Digital Revenue between The our Digital by service in from was quarter split and its Digital press a colocation at by Center XX% streamlined live during experience colocation recorded Data the And coming As management grew Services same its revenue year. our our completed website. Services last -- performance, automation last Services quarter wins on grew accelerate quarters. is services last by over detailed Center assurance, will Network of same year. of quarter revenue of same This over summarize business provisioning the from XX% To X% key year. fell XX%. Centric Network list over Data

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

M. P. Vijay Kumar

Good Kamal. everyone. morning, you, Thank Yeah.

the EBITDA Capital the briefly XX% quarter the was the quarter INRXXX tax of an Services Infrastructure expenditure INRX,XXX be encouraging. XX% Digital after over increase last was Profit was The over INRXXX before the quarter XXXX-XXXX. sum increase year. million, was the for million. a over of quarter of growth million, year. of an for last an XX% demand quarter same the for X% during INRX,XXX tax last up of Revenue quarter million, to third INRX,XXX year. quarter same the Profit over customer financial performance continues financial same year. last same me million, Let increase year was

will our Network We Center to Data capacity. and continue expand on

will customer Cash fiscal our Our continue impacting remarks. was balance the right I discipline experience. hand of to our at for quarter end closing without his over now journey through investment million. will INRX,XXX Chairman

Raju Vegesna

enterprise legacy Thank enterprises, adoption several The this you, our already of only automation. process, Vijay. in are of transformation of In India the of fine tuned through adoption midst the the that of through was accelerated process. pandemic the some the matured services systems demand. by

overhauled. now well with bouquet of Sify for be Thank Operator us fits hand market to the you will demand. call. had joining services more to this The now are questions. completely Operator? over -- I’ll on current operate I the Some for

Operator

Instructions] your [Operator announce affiliation first Burns. Your question pose Please today your question. for coming from then is Greg

Greg Burns

Sidoti Greg wanted was morning. do investment to taking what & in first the contact you. Kotak -- that their about and investment. the from I business rationale Burns center What Company. involvement? with ask Good the behind just about Thank you see the benefits

M. P. Vijay Kumar

I? Shall

Raju Vegesna

go please Yeah. Vijay Kumar, ahead.

M. P. Vijay Kumar

funds, across the names, globe. the are is the which fund most Yeah. an of wealth participate which best Greg. is in where bankers among include one by sovereign Kotak India, in has established fund, the Center managed LPs, investments who which investment alternate Thanks, Data

business been and has you presence in As Center demand Sify a have Data we Center for investing our the in active the very aware, capacity, services. Data highly Services Data Center continuously considering colocation increasing are expanding

next rather where or is part financing So convertible our this meant years. for three of compulsorily investment financing over Center instrument, from the Kotak it is Greenfield Data through expansion a some capacity

So, investment background the that’s and the investment of the house.

Greg Burns

Okay.

I to greater I what understand of, the does advantages a guess, just trying that capital does for terms ability it invest, accelerate you? little In bit to give it taking am outside -- you has flexibility, your better

M. P. Vijay Kumar

Yeah.

track the we So, helps amount financing, One it we capital, Data from capacity to to multiple it in million lastly, will INR an three raise equity crores, as INRXX,XXX competencies the who of funds $X,XXX create us expansion model us X needs fast respected and banking with million which about helps also a by which business. which be with over expansion the globally things. to established system, debt our banker along wealth and in is And tend is, debt can next of the raise are capacity of accessible validate Center Center our X. our ratio It LPs sovereign is business years. participation actually for to this does terms us approximately substantial Data

us before for also us raise capital places capital gives So already contracted. what we access have and beyond expansion it to

Greg Burns

guess, with I Data Centers, of it to Great. the investment million also in like, INRX,XXX committing mentioned part that incremental… all is incremental is, you Okay. then,

M. P. Vijay Kumar

Yeah.

Greg Burns

incremental to that made? from from … when on or what’s Kotak that? kind how into and or we timeframe separate be raised is read should is And expect you that, new that that investment the capital of you

M. P. Vijay Kumar

this The numbers where release which from financed special effective Center the March progress. the internal -- the by debt accruals to taken we Kotak which are there Data work are communicated projects is is projects new up Kotak be will the of for for and will are for currently calendar Those the have be from exist banking projects been What from press in system. raising Fund year. greenfield -- for

Greg Burns

Okay.

growth just can segments, in give XX% different the of But decline? the give guess, could you was pieces? an assuming Services, and a little of your the then, report within just And breakdown of, Cloud terms reclassified Okay. you Managed you grow. of to I continuing you idea me Services us that I’m way Digital

Kamal Nath

Yeah. Yeah.

progress hopefully, Those as in Services, Cloud those this pandemic projects and get this projects quarter our far the Technology continues this the is rightly quarter, will as we a chain projects had in where issues, couple as and four. whereas execution are be Services you of grow, So to completed, working large given Sify Integration associated Managed calendar supply executed. the quarter, particular Digital concerned, Services observed, in to

the So the Services, grown and during the there’s Services Integration and the quarter a de-growth. others, Managed Cloud particularly Technology

Greg Burns

is there the of some -- back of business what’s in in your in anymore? on you of and of getting by, terms constraints I Is normal in guess, like, guess, what’s the constrained terms guess, it brought India, back are conditions like, terms status business the pandemic, or up I maybe since Okay. pandemic? to you more the I the -- where, lockdowns of mandates it looking forward the view,

Kamal Nath

almost conversations back these work-from-home a Network opening customers are Otherwise, get Chairman the normal, Center to revenue It’s as pursuing they the and are on and perspective, as with conversations to growing. high be in organizations conversion this states still few we model. to From orders the into are are except foreseeable to that as Data as continued continues lockdowns a Services, work expect normal. to his businesses getting many far having in tangible and a there remarks, extensive specified demand Omicron, in business observed back for that limping and the weekend. And Transformation the Services future. the Digital Except converted

Greg Burns

Okay. Great. Thank you.

Kamal Nath

Thanks.

Operator

[Operator Instructions] this no at time. are questions in queue There

Raju Vegesna

this through this you Thank day. you. We forward to year. Thank a much. your appreciate look Have with on great call. time very interacting We you

Kamal Nath

much. Thank you very

Operator

you, gentlemen. call. conclude and conference Thank ladies This does today’s

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

Sify Technologies Limited (SIFY) 24 Jan 222022 Q3 Earnings call transcript