Sify Technologies Limited (SIFY) 20 Oct 232024 Q2 Earnings call transcript

Greetings. Welcome to the Sify Technologies Financial Results for Second Quarter Fiscal Year 2023 through 2024. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Praveen Krishna.

You may begin.

Holly. you, Thank I'd all and Technologies extend warm a Good our like participants to of Sify on welcome morning, to behalf Limited. of Raju and on by joined call Vegesna; Chairman, my I'm Executive CFO, Group the Director Mr. my today M. P. Vijay Kumar; CEO, my and Mr. Nath. Kamal

the on will there comments for be our opportunity questions. results, Following an

the to a a of (XXX) we'll and XXX press do at you. you please obtain release, release sent may Alternatively, you of Information at If the copy call Investor not copy XXXX, corporate have have company's our www.sifytechnologies.com/investors. section Grayling at the X Global on website

A the in accessed by the Sify corporate replay Investor the dialing provided or may release the numbers accessing website. by the of today's press webcast call of in section be in on Information

calculated comparable directly and in and presented between available made financial accordance non-GAAP differences website. the GAAP the of measures the non-GAAP during for Standards, Sify's Financial and measures. years. and measures and of this include release in made to of calculated results or most the A GAAP earnings the in accordance measures the and and financial measures will be such financial a differ reconciliation to presentation measures previous according comparable call International may most of are referred with somewhat the in from will GAAP non-GAAP such announcements IFRS, Reporting the with year presented on Some Sify's

releases. to With Reform seeks the by company Private protections forward-looking and to statements XXXX. and differ materially in in conference Litigation uncertainties that Those factors, principal could statements the this could in Before statements, cause historical variety identify actual cause the to SEC complete rather forward-looking lists from such we to actual of and and results risks uncertainties Securities public described certain are not those are but list including release those the risk time to risks continue, These are inherent to afforded the a risks to business. factors competitive call statements, earnings company's listed intended described. that forward-looking subject reports from Act to all and a of to I'd out differ facts, time materially contained like and point intended developments the are respect certain company's of from that include than factors results represent

now would introduce my Mr. Chairman? I Chairman, to Raju like Vegesna.

and the Asia of business point will of exploring transformation interconnect data clarity entering Middle highlights thank to the and audience on government entities now the also transformation systems Thank and by landscape. our and joining shape law. you CEO, in important data players. into India's some expand regulations viewed welfare the quarter. investments is call. as me viable automate an between international to you, localization to India's center the will in India will which around being the help accelerate security, lead being policy adopted give This morning, data formalization phase final a the Praveen. Good and a data us for past into will This services Kamal, bring tools digital tools.” in scale, more social East Sify’'s connectivity Kamal? target for the and Enterprises be digital continuously of looking Let

Yes. Thank Raju. you,

infrastructures. across they and hybrid edge also cloud, pursue are network As objectives, security recalibrating digital enterprises digital their and digitalization transformation their infrastructure

overall the cybersecurity, experience, and customer business this are for modernization AI Our adoption recalibration. application models drivers continuity, prime of

to selectively recalibrate to our customer aligned needs services portfolio are the and the engaged specific identify Simultaneously, same. their are investments meet we support goals. our customers infrastructure continuously propositions with fundamentally Our to and

services Data Center at on revenue XX% between the XX%; digital split The highlights the services quarter quarter. Services the businesses Let for network business me and the at was XX%. now at expand for Colocation

the capacity. Sify data During added center new X.X of quarter, megawatt

Sify the the XX, across same XXXX, year. services has service quarter now last SD-WAN fiber the over September on X,XXX points deployed Sify As via provide a increase across XXX country, country. XX% nodes

quarter, startups wins in of as detailed venture live of the USD in on the date, invested million. release, initiative. in X.XX cumulative stands part website. X.X recorded our our the Silicon During million our now area investment USD Sify at To capital corporate Valley press list our key A is

on and Group Let financial in Vijay? our Vijay, the me bring elaborate for highlights the CFO, Director Executive to quarter.

Thank morning, everyone. Good you, Kamal.

year before present EBITDA million, Profit quarter briefly was XX% of me a year. was versus last XX% X,XXX X,XXX INR over increase quarter XXXX/'XX. quarter the same last decrease was after tax a million, tax a of X% INR performance Profit quarter over versus increase was Let million, year. XX financial INR the the year. the the same same decrease XX% million, XX of last of second INR financial an Revenue of same year. quarter the for nominal last

expenditure X,XXX quarter the Capital during INR million. was

reflecting to for opportunities India skill our and transformation services given We net engagements to is actively led Inc. make pursuing. capacity to on foresee interest and in and sets IT creation build we depreciation continue across centers investment people that the profit. accompanying expansion data This substantial digital has network the cost

up businesses, on actively especially We measures our all scaling sustainable our data across centers. are also

I the Chairman end X,XXX INR now at closing will Chairman? of to his the for balance million. quarter over was hand remarks. cash our The

are the for for in search transformation their a Enterprises proposition In for Thank who businesses. you, pursuing service Vijay. their digital bring they'll model look providers will partners, to aggressively table. India value

to services enabled their digitally needs. to of our be the and ecosystem are business answer most evolving converged Our

now a And at. are opportunity across So the looking India. we that's way have great we

hand joining over call. to will operator on now I this questions. us you Operator? for Thank

Markets. for from Atkin [Operator Instructions] first Capital question Your today coming Jon at RBC is

demand what deployment has going terms And maybe and the of you I you're that it ago talk overall into seeing your India? for if And a than ago, in your capital of demand? advantage AI about then forward bit months strategy demand months wondered for taking X could that X differently market? little anything in implications

Jon, this is Raju.

you One, at we in talk AI/ML is the having even it if AI/ML about or answer, in a in businesses, X adoption enterprises. government, to are discussions -- into enterprises it look So every is there with India, -- their any I'll sections. AI make adoption

So to that is want given. how their it they you their Either want operation, run look how data digital they to services, run want how at their they network centers? run to

be opportunities and AI/ML -- has at for their way customers discussion the do will every are how there that is AI/ML that are you useful business. adapt looking So

the the capacity required seeing AI/ML, the what market. see we what are AI/ML, -- growth data the we the Second, uptick are is of also, the we for the centers in because the seeing

even Services Digital then So I good for think view, and for network both of point our infrastructure Sify it's data center also our and expansion.

And interested over the So technology how AI/ML adapt they customer topic. that board. across is all, important can tools in an every AI/ML is India and

that higher often providing times language capital have that and rack the for in given To that density you I models so density extent and what large to wondered implications forth, are demand your design going -- your the these the for one higher try requirements? even by might directly with associates budget capacity requirements meet to that

going a equipped ones, have center support especially lot the capacity higher the is be And data -- to data we racks. density to of also are new our available. centers, -- All also

very the to a good uptick or Indian in enterprises are position we So take either a AI/ML even hyperscaler from in coming market.

that and is and we our to we -- considerations our data So the network X infrastructure. center of look invested across

coming from question next Your Sidoti Company. Greg is Instructions] & [Operator Burns at

centers, data over Could of the you much plan the us you bring on and just your update new to map year the how timing road capacity next for online that?

India But of we bringing a expanded market, will substantial our And market, we before, are our bringing X we things going bringing not market. months Noida also, in the substantial And in in the and Hyderabad is capacity -- things. we expanding also be we we available One is as X capitals. and Greg, the -- capacity our we the are to in it are Mumbai also. in these Chennai forecast lot remaining plants are is all in next investing this is Bangalore market. North -- are And

X in in investing are the markets we So India. all

X the Noida, does Okay. extra the months, that How capacity Mumbai, capacity bring Chennai, much how much online? next in

there X phases, infrastructure. capacity, right? non-IP physical the of the availability One See are is is location, other

we months. we of our megawatts. -- X facilities are locations are of XX to capacity capable we have And -- more probably next -- will to XXX north expanding XX are So we these -- of than have within X between expanding the a capable but megawatts

Okay.

Okay.

what? XXX mentioned So total, more you the XX than XX to but is megawatts

build you it by So demand.

Okay. Got it.

Okay.

build it You are [available] build demand, by and it required Campuses phases. right? is what then you in

Okay.

to XX XX demand So XXX-megawatt you've Is of you sold that... capacity. have or megawatts that

sold. either or it's sold that Yes, being

of we ahead the the and build look of Some schedule so things that's at we've it. way

bit EBITDA expected. little quarter, this more little I was bit rose I than was a SG&A Okay. a lower, looking All right. and guess for

talk model EBITDA going of the So because to off I quarter. margin good just And of driving that what's down that could in a level you growth Is SG&A? it guess about forward? was this

you about -- Or these for that new revenue to of some level to do increase is is investments a business? expect So the maybe picks good the as up? think this on that

under substantially are getting we new track. doing the are investment. And our is we also, One Digital thing Services, that the

and in our investing are other we So manpower activities.

businesses exponentially -- independent can growing fast. grow to it So all make X

So time, will this you our think costs reinvested, investments it why will are and high. we over SG&A are it but And some be reason our is in these the bump substantially proportional probably the to That's making forward -- revenues. areas. be I seeing

Okay.

Kotak Okay. as that the equity? And reclassified include any does that debt has the of part Or been then of all level, investment?

draw date, XXXX additional October. anytime have before [ [indiscernible] and till and to April ] we 'XX money

up growth? the the that And of the XX% quarter. lastly, was primary What Digital Okay. Services driver in was

way once our managed Data lot our focus, we we digital I -- have we I'll are putting Center if our seeing you and Colo, we services, our and our infrastructure application, network we Like Services, are a of all the Digital growth. the X, investments, a said, cloud, take network and -- Digital Services, services, X describe managed separated

business So all to on major make of see separated. that the and that say -- are the lot But putting investing we X we to overall, is -- effort There continuously grow. can deals are areas. we a growth, no

[Operator turn any reached the remarks. the Instructions] now of Vegesna, Raju end the question-and-answer and I to session, call We over have closing for will

with your we interacting look Thank time call, on year. and forward for you Thank to you through the this you.

Thank you, Holly.

Thank your at does today's this for participation. may lines time. call, conference and conclude Thank your This you disconnect you you.