SIFY

Sify's Financial Performance: Sify reported a 20% year-over-year increase in EBITDA for fiscal Q2, but revenue only grew by 3%, totaling approximately 10.5 billion Indian rupees (around $119 million).

Stock Market Reaction: Following the quarterly results, Sify's stock experienced a significant sell-off, dropping 5.5% on Monday, although it remains up 298% year-to-date.

Investment in Infrastructure: The company is heavily investing in data centers to support AI services, but many projects are not yet operational, contributing to the current slow sales growth.

Market Volatility: Due to muted sales growth and uncertainty regarding the timeline for new data center operations, Sify's stock may continue to experience high volatility.

Financial Performance: Sify Technologies reported a Q2 EBITDA of INR 2361 Million, marking a 20% increase compared to the same quarter last year.

Losses: The company experienced a loss before tax of INR 194 Million and a loss after tax of INR 275 Million.

Capital Expenditure: During the quarter, Sify Technologies incurred a capital expenditure (CAPEX) of INR 3,064 Million.

Revenue Growth: The company achieved a revenue of $10.5 billion, reflecting a 3% year-over-year increase.

Financial Performance: Sify Technologies reported revenues of INR 10,533 million, a 3% increase year-over-year, with an EBITDA of INR 2,361 million, reflecting a 20% growth. However, the company incurred a loss of INR 275 million for the period.

Management Insights: Chairman Raju Vegesna emphasized India's digital transformation and Sify's commitment to investing in data centers and AI-ready platforms to support enterprise transformation, while CFO M P Vijay Kumar highlighted the company's focus on fiscal discipline and strategic long-term growth investments.

Business Highlights: The revenue distribution for the quarter was 41% from Network services, 39% from Data Center services, and 20% from Digital services. Sify also expanded its data center capacity and increased its fiber node count by 12% year-over-year.

Customer Engagements: Sify secured several significant contracts across various sectors, including network services for banks and health insurance, data center services for major banks, and digital services for logistics and healthcare providers, showcasing its diverse client base and service offerings.