Sify is riding high on back of its enterprise business at least that’s what we can gauge from its latest quarterly results. Sify has announced a marginal decline in its Revenues at $39.19 Mn. against $39.39 Mn reported in sequential quarter.
The company has reported huge jump in Net profit at $9.46 Mn against a loss of $2.53 Mn in immediately preceding quarter. The company reported Net revenues of $23.13 Mn and net loss of $5.26 Mn in corresponding quarter last year.
According to Mr CVS Suri, Chief Operating Officer, Sify Technologies, “We continue to see growth in Enterprise services revenues across hosting, applications and managed voice services. On the consumer front, we are finalizing our plan for a unified approach with value added services delivered across platforms: cyber cafes, broadband as well Sify.com users. We are also soon launching a new business model for cyber cafes to expand reach and revenue opportunities. “.
Some Quarterly highlights as reported by the company –
Enterprise:
The Enterprise segment is doing wonders for Sify as segments like Hosting services, Infrastructure Management & Hosting services are bringing ample revenues for the conglomerate. Hosting services business grew by 20% during the quarter and company is also mulling entry into cloud computing. The International VoIP business grew 7% over the previous quarter.
E-Ports:
E-ports(Cybercafe) has seen a gradual decrease in numbers over last few quarters. The no. of operational E-ports are down to 1384 Vs 1500 in just a quarter. Sify has been able to leverage its E-ports for variety of services like E-learning and other monetization purpose but still it is not able to put a break in the declining numbers. The E-ports in our opinion are seeing a lull mainly due to traditional piece of hardware and slow internet services used by them.
Broadband:
Broadband business is in pesky condition as it is seeing a continuous decline in Broadband subscribers. The total broadband subscribers declined to 121k against 181k last year at a time when Indian online growth story is just getting bigger and louder by the day. It is mainly owing to entry of new regional players and strong competitive measures put in place by Telecom giants for aggressive broadband forays.
As noted by WATBlog earlier Sify’s gains are majorly coming from its enterprise segment whereas Consumer segment is still in bad shape. Sify’s revenues can still inch higher in coming quarters as demand for enterprise hosting and E-learning management services are on a stupendous rise.
Raghav,
What makes you think they are riding high?? All of their profit this quarter is due to a one time settlement for 12 million USD. Without that they would still be loss making.
BTW – I see you have a strong interest in Equity Markets. Operating Income Vs Other Income is important.
Rajesh
@Rajesh
Thanks for pointing that out.I left out on other income portion in writing but did evaluate it while analyzing the results.
I don’t feel they are riding high on profitability but are doing great on Revenues front as income is up 18% Y-o-Y despite considering bad results in a year ago period.The performance is also good compared to other conglomerates like Northgate and rediff mostly due to their enterprise based focus.