SIFY - Earnings call transcript Q1 2023 | Sify Technologies Limited

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Operator

Good morning, ladies and gentlemen and welcome to the Sify Technologies Financial Results for First Quarter and Fiscal Year 2022 to 2023. 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, Mr. Praveen Krishna. Praveen, over to you.

Praveen Krishna

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

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

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

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

Raju Vegesna

for the best deliver methods Indian uncertainty it of large the a on growth. transformation. beneficiary these The of Good to Thank to started Even you, this macroeconomics investments and though to government, of still consistent practices us last number benefits. pursue part world, of requests strong economic to digital you India due policies, growing this call. outlook ambitions landscape reforms joining the biggest adopt for retained digital Praveen. We the opportunity the technology the months, using social is couple This of is the the in has enterprises the see the the a and morning, for the reflected everyone. for worldwide. incoming there's Thank in the from the and in been

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

Kamal Nath

are on comfort initiatives digital-only Yes. resulting digital number in delivered transformation in this levels. are across digital enterprise and Thank to new spark Enterprises you, growing an leveraging of a innovation They platform. adoption Raju. all is increasing across displaying a

While mandate earlier, our accelerate was clients' our to goals. transformation

tailwinds and things increasing data business greater policies outcome-based for initiatives and government's all and digital act adoption center, processes, cost effectiveness. our customer Our called Enterprises now data around aggressive to the as initiatives, upon services. around new cloud-focused digital in are interest network experiences create digital incoming should

over between me Let services over from was data year. services same XX% quarter Revenue revenue quarter. grew at the the Revenue quarter data last center the on business by XX% services Revenue The at for stayed same the network at and flat. digital from highlights last quarter for from now expand digital split grew year. businesses services XX%, XX% network the center by services XX%. colocation services

investment Sify corporate Silicon the quarter, part venture start-ups our During capital in the the $X.XX in initiative. of date, million. area has cumulative as invested stand Valley at To $XXX,XXX

If center of incremental Hyderabad in megawatts four Noida capacity commissioned data across and you quarter. facilities the

more wireless over service the X% network X,XXX base on nodes last services XXX crossed live country. same stations key via provides critical press country, across SD-WAN detailed fiber our list X,XXX XX, As recorded of in XX% connectivity than is A deploying the the year. our now wins on website. points milestone quarter XXXX, service across and a our a and June Sify release, respectively, increase, The of

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

M. P. Vijay Kumar

Kamal. you, Thank everyone. morning, Good

expenditure to be of We and gradually center tools XX% are year. XX% a last in Investment Profit over INRX,XXX Let financial me performance of the the footprint network sight decrease discipline. over the X% year. our an to without same renewable growth year energy data during adoption same our losing first of over INRX,XXX committed increase INRX,XXX Profit the last fiscal million, of quarter XXXX-'XX. was the people remain an INRXXX increase briefly Capital data quarter up the million, scaling tax complementary after quarter same financial this decrease was over and last of was year. year. and was quarter last for will centers. quarter Revenue of expanding of the present same a million. INRXXX into before the tax XX% million, EBITDA million quarter was

hand his Chairman? on services to of are As now revenues remarks. at our Cash will over INRX,XXX costs that Chairman across ensuring was million. we I scale, for the be balance optimized the are our would improved focus mix. our and end quarter closing

Raju Vegesna

given Sify Kumar. position is strong its Thank a performance. historical you, in Vijay

Thank will growth us pursue We one be questions. aggressively operator is we the on the to will for rebounds. will this Operator? market build The obvious of to focus ahead I now call. for our joining you There over the hand demand, choices. so can agenda.

Operator

Instructions] [Operator Greg, of Sidoti question & Burns is Greg from to Your Company. coming you. over first

Greg Burns

morning. Good

First, build Was the in that forward items? terms number better is of any the data for bit onetime a center this driven services came the of performance in expecting. rest it by good going year? Or we a to off little were of quarter, than that

Raju Vegesna

And I think both. of a it's mix

think hot. kind data the hope is we certain growth centers And because good growth. it a to I of think see I India in is

Greg Burns

the and earlier the they classified how you guess, just impacts then I you what year, ability to means data industry Can infrastructure And your Okay. status. this that about center centers, government gave for and that finance in your growth? talk data

Kamal Nath

had debt its debt It's with annual in presentation. lower finance announced And participating formally status at to government -- cost and cost. means relatively of long-term as funding. bill infrastructure lower at lots actually there the part notified. who look be to the insurance it particularly entities this access a long-term relatively What of The is institutions, are

plan. expansion raise we be to data So fund needful to resources center able our will

Greg Burns

Okay. you data financing I had Does expansion? at funding change your way center you with or know recently the that that in Kotak. just look any partnership

much could in update and maybe that Kotak drawn how way already? just give plans that change does how just any an us on -- you on you've agreement So your

M. P. Vijay Kumar

partnership The Kotak it's so equity. a Yes. is instrument, essentially convertible

cash what draw committed about We have to convertible committed we resources equity has strengthens be financial this of the a end far and we to a should more million us are is? the And rupees our And the drawn notify so year, XXXX gives raise in where which before for status expansion also million leveraging. is It to would to base INRX,XXX the another gives fund repayment this ability longer spread million, period, is flows within infrastructure before instrument. longer-term company instrument more plans. and convertible given leaving effectively INRX,XXX the be able over government free recently

Greg Burns

Perfect.

just are link the the does the about forward know demand then at helps advantage a two to starts competitive network the talk of build when And How network in India? those data business of you having going -- in how center side look for business? having as Okay. data position I could the give we market, kind center you your

Raju Vegesna

to I think both both the but going parallelly. goes businesses go hand are we to hand,

I data see network, centers we the think both and the potential.

are platform certain those As there taking the the digital run two we and and separate consider is independent transformation, more hyperscalers P&L. Yes, cloud businesses advantages, -- the but are

Greg Burns

Okay. Is questions? there ask to anyone waiting else

Operator

telephone about don't moment, I have Praveen. the webcast, lines. not no, Do in the At you the many? know

Praveen Krishna

have would on up -- box. No. chat popped on They the your

Greg Burns

Okay.

I checking. Just one have more.

megawatts for How now? of what's this data of right is this what this end for this And plans investment the commissioned, your plans of capacity terms I year, four much are year, -- much how mentioned you've in -- are incremental guess, center quarter. capacity the you year? like your for -- total So online you capacity bringing what by additional capacity your

M. P. Vijay Kumar

under not projects Delhi, are is past, XX about which data cities spread capacity, statements. megawatt and the there three Chennai. operational power And IT construction over New greenfield are a But give at we nevertheless, which of are have in in as centers Mumbai, to three currently is position projects, we Noida to construction. we are greenfield at forward-looking under large XX and So which seven across committed

Greg Burns

still plan the to the remains is megawatts Is the laid over still next, that add guess XXX out. what capacity think, I I you But years four of plan?

M. P. Vijay Kumar

to capacity. double done the we our four positive, Over to three more financial have pretty two And operational, years, we capacity capacity is outlook the the adding us as than And should years. very more the in evaluate closure, we'll make which next next support positive.

Greg Burns

your maximum Do cycle, on over you're you that leverage this leverage kind we going of through? have this And leverage to is you high build the Okay. do going think cycle get? investment at as look a over how target

M. P. Vijay Kumar

Yes.

company. we whereas sub to could three has with up the typically, debt benchmarks the have are Board we for currently One which go two, to set in is million. terms anywhere one equity, we INRX.X of So

about accepted we which currently is to Second is we over leveraging enough have little fairly have a and multiple ability a enough add room times service ratio ratio, and two debt-to-EBITDA are coverage we times, debt. also, debt three and on good

Greg Burns

Okay. you right. much. very All me. That's Thank for it Perfect.

Operator

queue. the on Okay. questions in Instructions] Praveen, further webcast? to do appear no have questions the any have you [Operator We

Praveen Krishna

No, chatbox. we the at can go ahead

Raju Vegesna

and to you. interacting you. time year, Thank the you on forward Okay. Thank great day. a have look through for and you this your Thank call, with we

Operator

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

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

Sify Technologies Limited (SIFY) 22 Jul 222023 Q1 Earnings call transcript