Sify Technologies Limited announced its consolidated results under International Financial Reporting Standards (IFRS) for the fiscal year 2016-17.
Performance Highlights:
Mr. Raju Vegesna, Chairman, said, “We have maintained our record of growth for the fifth year. We continue to see a general trajectory of Enterprise clients moving towards a single-window service provider for execution of their critical IT transformation projects. Through our consistent delivery and demonstrated value, we now occupy a crucial position as a strategic partner in our client’s transformational journeys.
To date, our investments in global markets have been cautious, yet promising. I am seeing a growing trend of clients moving away from large incumbent service providers and entrusting projects to a growing number of nimble, proactive service providers. Our suite of managed services and our offshore delivery model should benefit from such changes.”
Mr. Kamal Nath, CEO, said, “We continue to see healthy growth in Order book and revenue, resulting from the investments we have made in both the size and expertise of our sales team. Over the past year, we have booked new orders that represent an Annual Contract Value in excess of INR 10000 Million.
A higher number of IT transformation projects have contributed to the revenue this year. There have also been deeper engagements with existing clients, in which we were better able to leverage multiple Sify services. As a result, we have been able to reduce our dependence on our traditional telecom services and significantly grow the contribution from IT services.
The increased mindshare that Sify enjoys from Enterprise customers was recently recognized when Sify was included on the list of India’s “Superbrands”, after an absence of 10 years.”
Mr. M P Vijay Kumar, CFO, said, “Last year, in a continuing practice of investing ahead of the curve, we enhanced our Telecom and Data network capacity by 4 times. This reflects our confidence in the underlying market growth, although it has some pressure on margins in the short term due to increased bandwidth cost for capacity creation. Nevertheless, we are pleased that we have been able to maintain five years of positive Net Profit.
Another significant investment has been in people and process to support the Application side of the business. In doing so, we seek to carry forward the momentum built in leveraging on the Digital India projects of the Government of India.
In our recent interaction with Financial Institutions and Investors, the investment criteria, fiscal discipline and current business model were viewed positively. We intend to maintain the discipline as we continue to scale up our business.
The Board has recommended a dividend of 12%.
Cash balance at the end of the year was INR 1884 million.”
