Sify reports revenues of $ 37.10 mn for Q2 FY 2011-12
Sify has announced its consolidated results under International Financial Reporting Standards (IFRS) for the second quarter of fiscal year 2011-12.
Raju Vegesna, Chairman & MD said, "We are pleased to present our financial performance for the second quarter of FY 2011-12. Our Enterprise business continues to gain traction, supported by domestic growth in the corporate segment and a renewed spending environment. On the services front, the focus on Network, IT and software services as core offerings is beginning to show results. As the largest spender on IT and Network services, the government represents a significant growth opportunity for Sify and will remain an important focus area. The recently announced Telecom Policy is a step in the right direction in creating a level playing field among IT and Telecom service providers. Our SOHO/SMB base grew by 60%. More than half of these signups came from Tier II and III towns helped by our expanding footprint. Visitors to our Sify.com portal grew by 19% versus same quarter last year, helped by the launch of Health and Technology portals and the strength of Sify Sports. Software services continue its evolution towards a strong position in providing on-demand software-enabled services to enterprise customers. Our Skills Assessment and e-Learning solutions are gaining momentum and gaining acceptance across a larger customer base. Our Content and Collaboration services on SaaS and mobile platforms have generated considerable interest from enterprises that are looking for cost effective means of business communications. The overall outlook for growth in India is positive and we continue to invest in expanding our network, data centers and other infrastructure. Our network and data centre expansion and commissioning of cable landing station are proceeding as per plan. We remain very positive on the outlook for ICT services in India, which is supported by favorable regulatory trends. The proposal to allow Voice-over-IP domestically in India also provides new opportunities for data-focused operators, such as Sify."
MP Vijay Kumar, Chief Financial Officer said, "The Company remains operating cash flow positive, with operating expenses contained within our operating cash flows for yet another quarter. While our new capital expenditures continue to exceed operating cash flows, as we continue to invest for future growth, it is important to note that our Capacity utilisation has improved during the quarter. There has been an improvement in gross margins owing to increased engagement with the customers and roll-out of several value added services. The proposed inclusion of telecom projects within the funding ambit of India Infrastructure Finance Company (IIFCL) will open up more funding options for this sector. It is also expected to extend the tax concessions enjoyed by the infrastructure industry to the telecom sector. As previously reported, the promoters have paid in additional capital of Rs.100 crores pursuant to the subscription agreement. Cash balance at the end of the quarter was US $ 20 million and undrawn line of credit stood at US $ 3 million."
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