Sify Q2 Results: Revenues Boost By 12% At $38.28 Million, To Focus More On Enterprise Services

Sify has reported 12 per cent increase in quarterly revenues to $38.28 million compared to $ 34.32 Million in preceding quarter (Q1). The bottom line shown signs of improvement although it still reported a net loss of $ 2.36 million against a Net Loss of $3.35 million (including tax adjustments) in the June quarter.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify Technologies, said, “We continue to grow our revenues with significant growth in Enterprise services revenues. Enterprises are engaging us to help create new business capabilities and significantly advance their business objectives over the short, medium and long term. We continue to experience demand across data center services, managed network services and managed voice services. On the consumer front, we are seeing traction in the online advertising space and expect it to continue going forward. We continue our initiatives to consolidate and rationalize access services through cyber cafes and expect to experience the positive effects of these initiatives in the coming quarters. In consumer broadband services we have kept up our focus on new products, new partners, customer upgradation and promotions”.

Some Quarterly highlights as reported by the company

Enterprise Services:

According to company, Sify’s Enterprise services registered a 15% growth in revenues across services. Internet services under connectivity have grown three-fold over the same time last year. Sify also added some 100 new customers in managed network services including Enterprise class Internet services.

The company has also seen uptake in demand from SMB segment as it has registered a 50% growth in business over the previous quarter.

The International VoIP business seems to be on roll as traffic has grown by 20% over the preceding quarter. SIFY is also looking at Launching newer services in both National Long Distance & International Long Distance in the next few quarters.

eLearning Services:

Sify’s eLearning services has been bagging new clients in the Technology and Skills Training sectors. The company recently launched LiveWire – an open source Learning Management System on a Software as a Service (SaaS) model to further penetrate the segment.


Consumer services -

Broadband to home:

The company has conveyed that it would continue to roll new offerings in consumer broadband services  . Sify plans to revitalize this segment with focus on expansion with new partners, promotions, new products and customer up gradation. The broadband business has seen stagnant ARPU’s as company has been launching low cost schemes but the subscriber count too seems to be declining (currently at 137k compared to 154k in June quarter) largely due to entry of new players in this segment.

ePort cafes:

Sify has been focusing on introducing value added services to its cyber cafe chain and as such has seen decline in operational ePorts in recent quarters. The total no. of ePorts has been on a decline from 1945 in last year to 1500 in current quarter. Sify has also revealed that the ePort subscriber count currently stands at 306k .

The company ended the quarter with a cash balance of $ 5.36 million and capex for the current quarter stood at $ 3.60 million on account of data centre and network infrastructure expansion during the quarter.

Sify seems to be focusing more on Enterprise segment at the same time introducing various features for its Online portal business. Enterprise segment may help Sify in riding out the fluctuations in consumer related business but re-aligning its business model may be detrimental for its finances in short term. It also needs to be seen if the consumer related business which is facing flake from all sides can be revamped to suit current business environment.

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