labels: sify, investment - general
Sify moves towards profitsnews
21 April 2006
Chennai: Internet and enterprise services company, the Chennai-based Sify Limited seems to be finally on the profit track. For the last quarter of FY 2006 under the Indian GAAP norms, the company has posted a net profit of Rs5.67 crore on revenues of Rs126.8 crore. Even during the third quarter of the company posted a net profit of Rs1.31 crore excluding one time income of Rs5.95 crore.

For the entire year the company posted revenues of Rs463.9 crore and a net loss of Rs6.10 crore. While the top line went up by Rs106.95 crore, the net loss showed a decrease of Rs20.06 crore over the FY2005 figures.

Pleased with the performance, managing director and CEO R Ramraj, said, "Initiatives in our portals business during the year resulted in revenue growth of 74 per cent over the previous year. We continue to lead the market for infrastructure-managed services such as virtual private netowork (VPN), and have established leadership in the broadband access to home segment. The iWay cyber café chain continues to grow, with over one million subscribers using the 3,300 iWay cyber cafes across 153 cities in the last quarter".

Last year Sify bagged several clients like Bombay Dyeing, Celebrity Fashions, Crompton Greaves, Eureka Forbes, GVK Biosciences, Hyundai Motors, Indraprastha Gas, McDowells, Travel Corporation of India for its VPN services. Customer wins from international alliance partners include orders from Borgwarner, Microchip Technology and Sony Pictures.
Summarised Results (In Rs Crores)      

Quarter ended

Year ended

Year ended

Description

31- Mar

31- Mar

31- Dec

31-Mar

31-Mar

2006

2005

2005

2006

2005

Enterprise Services

67.95

57.35

63.42

248.80

198.04

Access Media

48.09

39.57

46.33

181.41

140.49

Portals

5.65

3.03

4.79

17.90

10.28

Others

5.09

2.10

4.58

15.76

8.11

Sales revenue

Net income / (loss)

5.67

(12.61)

7.26

(6.01)

(26.07)

Net Income / (loss) Rs / share

1.38

(3.56)

2.05

(1.63)

(7.41)

The company is setting up its third data centre in Bangalore to cater to the rising demand for hosting primary and disaster recovery data centers. This will be Sify's third data centre in the country after Mumbai and Chennai.

A five-year $5 million remote infrastructure management contract was also bagged by Sify from a legal services company in US. Another multi-year, multi-service remote infrastructure management contract from a large broadband services provider in the US is expected to generate revenues of approximately $6 million over the next five years.


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Sify moves towards profits