Sify(SIFY)2025-01-17 14:56Financial Data and Key Metrics Changes - Revenue for Q3 FY 2024-2025 was INR 10,491 million, representing a 21% increase year-over-year [17] - EBITDA was INR 1,914 million, an increase of 13% compared to the same quarter last year [17] - Loss before tax was INR 119 million, and loss after tax was INR 258 million [18] - Capital expenditure during the quarter was INR 3,343 million, with a cash balance of INR 5,327 million at the end of the quarter [18] Business Line Data and Key Metrics Changes - Revenue split for the quarter: Network Infrastructure Services 41%, Data Center Colocation Services 36%, and Digital Services 23% [15] - Sify commissioned an additional five-megawatt of data center capacity during the quarter [16] - The company has deployed 9,473 units of contracted SDWAN service points, a 14% increase year-over-year [16] Market Data and Key Metrics Changes - The company operates 1,109 fiber nodes across India, marking a 14% increase from the same quarter last year [16] - The demand for GPU as a service is emerging, particularly in the BFSI and manufacturing sectors, although the market is still in a nascent stage [22] Company Strategy and Development Direction - Sify is focusing on cost efficiency and fiscal discipline while investing in capabilities for AI opportunities [12][13] - The company aims to reposition itself to cater to AI workloads, anticipating a new set of enterprise players seeking mature network, data center, and digital services [19] - Sify is adopting IFRS 18 for financial reporting to maintain clarity and consistency [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of India's growing role in the global marketplace and its potential as an AI test bed [10] - The company is optimistic about future growth driven by digitalization and AI workloads, which will require substantial network capacity [34] Other Important Information - The December 2023 numbers were restated following the filing of an amended Form 20-F/A with the SEC [14] Q&A Session Summary Question: Can you provide more details about your GPU as a service offering? - The company is extending its existing cloud platform to support GPU services, with initial interest from enterprises in BFSI and manufacturing sectors [22] Question: Update on data center capacity and upcoming facilities? - Currently, Sify has 120-megawatt capacity, with 110-megawatt contracted. Two new facilities of 26-megawatt each are expected to go live soon [25][26] Question: Significant growth in SG&A, any one-time costs? - Current SG&A levels are expected to remain as the company strengthens its leadership team across businesses [28] Question: Digital Services posted a loss this quarter, what drove that? - The loss was attributed to a revenue mix change and investments in leadership for the business [30][31] Question: What is driving demand in network services? - Growth is driven by investments in wired line infrastructure over the past two years, supporting increased digitalization and AI workloads [34]