GuruFocus -
- Revenue: INR10,491 million, an increase of 21% over the same quarter last year.
- EBITDA: INR1,914 million, an increase of 13% over the same quarter last year.
- Loss Before Tax: INR119 million.
- Loss After Tax: INR258 million.
- Capital Expenditure: INR3,343 million during the quarter.
- Cash Balance: INR5,327 million at the end of the quarter.
- Network Infrastructure Services Revenue: 41% of total revenue.
- Data Center Co-location Services Revenue: 36% of total revenue.
- Digital Services Revenue: 23% of total revenue.
- Fiber Nodes: 1,109 across the country, a 14% increase over the same quarter last year.
- SD-WAN Service Points: 9,473 units deployed across the country.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 21% over the same quarter last year, indicating strong growth.
- Sify commissioned 5 megawatts of additional data center capacity, expanding their infrastructure.
- Network infrastructure services saw a 14% increase in fiber nodes, enhancing service reach.
- The company is focusing on AI opportunities, positioning itself for future growth in this sector.
- Strong demand in network services driven by investments in wired line infrastructure over the past two years.
- The company reported a loss before tax of INR119 million and a loss after tax of INR258 million.
- Digital services posted a loss this quarter due to revenue mix changes and investment in leadership.
- Significant growth in SG&A expenses, which are expected to remain high in the forthcoming period.
- Current results are weighed down by investments in people and interest payouts for expansion financing.
- The market for GPU as a service is still in a nascent stage, with uncertain growth predictions.
A: We are extending our existing cloud platform, Cloud Infinite, to support GPUs. We are conducting a few proof-of-concept trials with Indian enterprises. The market is still nascent, but there is growing interest, particularly in the BFSI and manufacturing sectors. However, it's too early to predict growth.
Q: Can you update us on your data center capacity, including operational centers and future expansions?
A: We have 120 megawatts of installed capacity, with 110 megawatts contracted. We operate 12 facilities across six cities. Two new facilities, each with 26 megawatts, will go live soon. Additionally, four facilities in Mumbai are under development and expected to be operational by the end of the year.
Q: There was significant growth in SG&A this quarter. Is this a one-time increase or a new baseline for modeling?
A: The current SG&A level is a good baseline for future modeling. We are strengthening our leadership team across businesses, so this level will likely continue.
Q: What caused the loss in digital services this quarter?
A: The loss is due to a change in revenue mix and investments in leadership and technology teams. We are focusing on upskilling and reskilling to prepare for future opportunities, which may require further investment in the coming quarters.
Q: What is driving the strong growth in network services, and do you expect it to continue?
A: Growth is driven by investments in wired line infrastructure over the past two years, now paying off. We have expanded our network in 17 cities and will continue to densify. Increased digitalization and potential AI workloads are also driving demand, and we expect this growth to continue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.