Sify Technologies has announced its annual financial results for the FY 2019-20. The revenue for this FY stood at 22952 million, the company has registered 7% increase in the revenue over last year.
Mr. Raju Vegesna, Chairman, said, "Every adversity presents an opportunity to rethink the way we do business. For some time now, Sify has been increasing the level of automation across our entire suite of services. And during the ongoing lockdown period, we have been able to perform remote commissioning and maintain high service levels without any major impact. I am incredibly proud of my team who are continuing to rise up to the challenges faced by our clients every day.
The biggest lesson for the market from this lockdown is that there is no escaping the digital economy of tomorrow. Sify's future is in enabling that for our clients".
Mr. Kamal Nath, CEO, said, "The current scenario under lockdown has created challenges in the short term and opportunities in the mid and long term for us. As a Service Provider, we are currently addressing the upgrade and downgrade requirements of customers, based on the demand. We are remotely managing mission critical infrastructure of customers who are serving the core industries and consumers. The current situation has also stimulated conversations with customers on the need for scalable, flexible IT infrastructures which can be consumed on demand.
We are seeing the Cloud sceptical customers showing enthusiasm on cloud adoption to ease their capex cost and cash flow. Organizations are reviewing how to provide secured and productive "work from home" deployment. As a Digital ICT Service Provider, we see this as an opportunity to further boost utilization of our investments and enhancement of our services revenue".
Mr. M P Vijay Kumar, CFO, said, "We had a reasonably good year 2019-20. The EBITDA growth has been healthy, while we continue to spend for the future – both in people and tools to increase our digital transformation service capabilities. The net profit is lower as the company is now subject to full taxes as past tax benefits have expired.
As global trade shrinks substantially and overall demand and supply chain recovery is expected to take time, we are preparing the organization for new contracts to be slow to conclude as some of our clients are likely to take time to regain their momentum in the market. We continue to carefully manage our costs, while ensuring that services to customers and their experience remain the best.
We stay committed to our data center, cloud and network centric expansion projects, and will exercise due caution in terms of both timing and cost structure of these projects.
Considering the economic conditions and uncertainty on timing of the economy normalizing, the Board did not recommend the payment of dividend this year and instead advised capital to be conserved and used for financing expansion projects.
Cash balance at the end of the year was INR 2651 Million".
