Earnings call transcript Q3 2023

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Operator

Good morning, and welcome to Sify Technologies Financial Results for Third Quarter and Fiscal Year 2022 to 2023. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Praveen Krishna. yours. is floor the Praveen,

Praveen Krishna

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

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

have at at one of our do to press copy release, www.sifytechnologies.com/investors. XXX-XXX-XXXX, not and the Grayling call the Information you you we'll If Alternatively, at on of Global sent copy you. corporate may the have please a website company's section a obtain Investor release

or Information accessed Sify replay dialing in the in by today's section corporate webcast website. on release provided accessing the in of may A the of the Investor be by numbers press call the

to International measures in Sify's non-GAAP call the somewhat the to previous the referred in of GAAP for IFRS, or years. from include results during Some may the earnings made measures. will announcements and the Financial Standards this differ Reporting according release are financial and year

such measures A available measures differences financial presentation Sify's directly comparable of in accordance made on presented GAAP of financial and most measures and non-GAAP website. in with the GAAP and of most between be a calculated reconciliation calculated such and the and with will measures the presented non-GAAP comparable accordance

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

Let introduce Chairman? Sify me Raju Vegesna, Chairman Mr. now of Technologies.

Raju Vegesna

us aggressive by is has This it you, demonstrated Thank Good thank changes on adoption disturbed morning, of of resilience established, to Praveen. you is joining not a that the call. easily larger IT drive domestic economy. an agenda well work formally government's business and ensuring worked in digital we'll has everyone, that reach the economy intended an The measures post-COVID the the India's with and enrollment. progress, demand. for the has is social continue beneficiaries for in tools,

early stages is well expected to together, its the still economy at the Indian of for in comparable demand you realizing of an that attractiveness the International spite tightening this And to the market world economy. worked continue is due potential. of

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

Kamal Nath

models, business are pandemic deploying digital Indian enhancing continuity era Raju. mitigating and on their success resilient you, and Thank fast-tracked navigating business and now models building initiatives aligned priorities Enterprise based have security innovations. experience, risks. their Yes. enterprises end-user pandemic the operationalizing are digital

business blocks Cloud Center are Services, Our enable important all customers' Services priorities. to Data Network and and Digital building

to each the expect of And investments. the grow related we with businesses

the same Revenue quarter businesses quarter Services same grew from Services XX%. and Network by over quarter was year. last me at Center Data from at Services approximately the XX%; year. quarter approximately XX% split Data grew expand quarter. Let Services on same from now business over XX% the Revenue Services Digital for XX% last between X% Services the for Network Digital over balance year. the at revenue Revenue grew last Colocation The Center

X.X center quarter. Sify in capacity commissioned megawatt of the incremental data

on country, an the quarter network country. the X,XXX December services fiber XXXX, Sify across same via bonds provides nodes service year. XX, has XXX As connectivity over service XX% -- across now increase deployed last The the

the investment USD corporate of During in our million. of the Silicon key venture invested A X.XX date, start-ups detailed in area is our -- press capital on live Valley cumulative has release, in now Sify initiative. as website. our our stands quarter, dollars at the part in To list wins recorded U.S. the

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

M. P. Vijay Kumar

Thank everyone. morning, Good you, Kamal.

before performance me same year. profit an briefly EBITDA due profit tax XXXX, XX% was increase sum a quarter financial same the after year. the third last decrease million, Revenue an was the quarter recognition of asset. is same a over Profit the than The higher million, XX% deferred quarter last of over the for XX% million, over INR tax quarter tax before 'XX. of increase financial year tax to Profit XXX same a the XXX of tax year. of over after was INR X,XXX decrease last was of year. up quarter PBT, Let INR X% last million, the

was quarter million. the during expenditure Capital

and continues of investment into from Center Our business the both retail with Data customers. demand hyperscale incoming side the

will and metro We Services our processes, business. and for expenditure resultant this have our both in business people connectivity, demand. fiber scale up scaled Network network investments, in cities network and cloud to Digital tools, in select our people in augment capital interconnect operating investment expenditure

Fiscal Cash our the I our hand now was INR of constant, will balance investment quarter in Chairman over discipline X,XXX end of process. closing his to the million. remarks. particularly at for will be

Raju Vegesna

the continuous ambitions, adoption service Enterprises Vijay. require investment size you, will as imperative. like on a with of Thank now their Based and us. view it engagement digital providers business

over call. for questions. Thank bracket. us for to in this consideration to Our become their joining hand their operator in bracket you aim on considerable is the now Operator? will a constant -- I

Operator

[Operator Instructions].

from is question first & Company. Your Burns, Sidoti coming Greg

Greg Burns

The little was I in bit a margin EBITDA below expecting. came what

there to mix I think outside some the of lower of to anything of was led digital margin? that's higher that but the services mix, due

M. P. Vijay Kumar

right. is cost into fiber to I mentioned, You're it is due people in select -- operating as expenses, cities. expansion our essentially our investments it And to for in services network also There is business. digital our investment metro due

Greg Burns

I the spend? margin get start will Okay. Do see to from from you to when these are you of offsetting going see guess, start these the the you incremental leverage contracting here? Or further some investments, some on revenue to investments

M. P. Vijay Kumar

Correct.

and help scale future. margins incremental the think to us the spend I should in our up revenue

continuous infrastructure to us both on for revenue know, investments and profitability. these businesses scale you As require

So these that in are expenses direction.

Greg Burns

Okay. or increase bit way, do a before Maybe here? -- we you from mean a level just to -- grow more expect to margin good contract to to this I going out? them little is margin again? further Or model we ask another are investments

M. P. Vijay Kumar

I quarters. don't -- should same made at monetizing want have I And last current in investments that the sound level, to forward-looking, Yes. we don't few Future. but over believe we we start the the

Greg Burns

Okay. of digital the growth what driver the that? was strong Perfect. business. side the drove to then And main dig What service on of the into just

M. P. Vijay Kumar

Kamal?

Kamal Nath

will I reasons X, So assign. X

So we large-sized projects. had medium-sized books order some and for

when we the and revenue. been the have to we able projects, have recognize completed So as

are quarter. seeing recognition respect completion to So are so is seeing of investing was And to of is of in Vijay we Yes, business the also as the during that digital continuously the aspect the one. revenue, there -- space. project course, acquisition we with mentioning, other and also the were the are That some around seasonal the aspect it increase on Services. we and Digital in services And

those are primary reasons. So X the

Greg Burns

Okay.

the guess think out, we -- step as that projects pipeline strong, back would So that some the quarter maybe the maybe technology business. I And expect not on that looking on how should we going is services but down forward? side about next timing if or integration of to

Kamal Nath

These Right. as lot well in technology services service which of take course, these as are bit of of projects cloud the transformational introduction as as includes, well time services. nature, very projects because a managed

the of part expecting a we work, are outcomes, as off. sign transformational So the the which post of clients get scope

but same even these the are time. are complex projects So great, if at the

of recognition line of see increase project on time implementation. these characteristics. may the irrespective revenue may how the acquired, the we we based such see define That's business seasonal -- So

Greg Burns

Okay. But you still feel the pipeline good of demand... about

Kamal Nath

yes. Yes,

Greg Burns

the terms how from capital you've much Kotak and Kotak, Okay. of from in remains much And of drawn then outstanding? how

M. P. Vijay Kumar

-- further INR in rupee to million. -- we INR INR million In INR X,XXX XXXX Yes. And a drawn million. so have far we XXXX draw terms, option have

Greg Burns

how Perfect. year? your you in online of data much to incremental of Okay. terms center this come do And capacity expect capacity, megawatts

M. P. Vijay Kumar

operational initial X at are become Noida All the there of X fiscal year stages major be projects which will ending which Delhi, are to 'XX, And will an Mumbai, but they're the under about start megawatts, capacity and the but capacity end presently of we customers. construction In 'XX. incremental to XX calendar all X in delivering greenfield are it cities: our year Chennai. is March designed small, expected for

Greg Burns

Okay.

So -- okay. Perfect.

calendar So or... those online start coming will the year throughout

M. P. Vijay Kumar

calendar later actually It's Yes. year. part of the

Greg Burns

Okay, perfect.

is the is just investment start-up Valley, technology? a that Okay. you're there? And financial you're investments that making purely Silicon to acquire making Or in

M. P. Vijay Kumar

we digital These their to in to transformation. customers take for which are can access enterprise it journey in India, basically technology, our

Greg Burns

it data center bit was lastly, I lower -- growth And Okay. expecting the and a just than little I bit, was actually little down think, right. All was then the revenue revenue, a the sequentially.

fluctuation what more that driving there's just some growth a as but kind quarter-to-quarter other think I of business that. So there. maybe drives steady of would things secular

M. P. Vijay Kumar

There's actually fluctuation. no

last recurring onetime will a stable. delivery recurring new a gets the steady capacity operationalized. As continues accrued is as And to be revenue. revenue, which quarter, you The The some us. to it seeing rightly start we growth observed, revenue had when revenue in capacity

Greg Burns

everything Perfect. right. Okay. That's for me. All

M. P. Vijay Kumar

Thank you.

Operator

Instructions]. [Operator

now don't to closing questions, any management to over We hand for other Okay. any will remarks. back I appear so the have

M. P. Vijay Kumar

through call. time Thank year. the interacting forward you you. on you your We to Thank with look this for

Operator

Thank today's concludes you, everybody. conference. This

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

Sify Technologies Limited (SIFY) 25 Jan 232023 Q3 Earnings call transcript