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Sify revenues grow by 11% at $150 million for 2007-08

Sify Technologies has reported revenues of $150.59 million for the year ended 31st March 2008, a growth of 11 per cent as compared to $136.12 million reported for the previous year. Net profit, however, went down from $6.25 million in the March 2007 ended year to $0.12 million in the 2007-08 financial year.

According to Sify, its Enterprise and International segments of the business registered strong growth at 27 per cent and 36 per cent respectively, while the consumer segment dropped 20 per cent over the previous year.

Sify Technologies has reported revenues of $150.59 million for the year ended 31st March 2008, a growth of 11 per cent as compared to $136.12 million reported for the previous year. Net profit, however, went down from $6.25 million in the March 2007 ended year to $0.12 million in the 2007-08 financial year.

According to Sify, its Enterprise and International segments of the business registered strong growth at 27 per cent and 36 per cent respectively, while the consumer segment dropped 20 per cent over the previous year.

Net profit for the current year included one-time benefit of $3.1 million on account of a change in the depreciation policy. Net profit for the year was under pressure due to lower margins due to the sales mix, as well as a notional loss incurred on account of the strong rupee against dollar, Sify has said.

Exceptional items during the year amounted $3.97 million on account of legal fees. Net Profit excluding this amount was $4.09 million.

Sify ended the quarter with a cash balance of $22.21 million after capital expenditures of $20.58 million during the 2007-08 financial year. The company hopes to augment its cash balance with the infusion of $57 million dollars, ‘which is currently under process’.

Raju Vegesna, chairman, CEO and MD, Sify Technologies, has said, “The turnaround of the enterprise and international segments has resulted in robust growth in these businesses. We expect the results of our restructuring of the consumer businesses to be felt in the current financial year after the second quarter.

“Preparations are already underway for the re-launch of our chain of retail outlets offering online services with a new brand name, as well as our broadband services. The portal will follow towards the middle of this financial year,” Raju Vegesna has added.

C V S Suri, chief operating officer, Sify, has said, “The results of our restructuring the enterprise side of the business are clearly evident. We are now ready to re-launch the consumer side of the business during the course of 2008-09 with new brands, new formats, new technologies and new alliances.”

Vijay Kumar, CFO, Sify, has said, “We have invested substantially during the year on network expansion and data centre space. We will continue to invest in both this coming year, as well as in building Sify’s head quarters in Chennai with sophisticated network command centres and additional data centre space. This will entail an investment of about $125 million, including the current expansion.”

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