Sify(SIFY)2025-04-22 12:29Financial Data and Key Metrics Changes - The company remains committed to cost efficiency and fiscal discipline, aligning financial strategies with long-term value creation despite facing headwinds from capital expenditures and increased manpower costs [4] - Capital expenditure is expected to be marginally higher compared to the previous fiscal year [14] Business Line Data and Key Metrics Changes - Network services did not experience a revenue decline, but substantial expenses were incurred for new capacities leased for future business requirements [10] - Data center revenues show a secular growth trend, with two new greenfield facilities recently going live, each designed for a capacity of 30 megawatts [12][13] Market Data and Key Metrics Changes - Demand continues to exceed supply in the market, driven by cloud consumption from Indian enterprises and expanding hyperscalers [16] - In the short term, demand is expected to be driven by international hyperscalers, while medium to long-term growth will likely see increased consumption from Indian enterprises [22] Company Strategy and Development Direction - The company intends to strengthen its unique selling advantages in network, data center, and digital services over the coming years [5] - The focus remains on building resilience, enhancing operational agility, and capturing emerging opportunities in the ICT industry [4] Management's Comments on Operating Environment and Future Outlook - The operating leverage for network and data center infrastructure is positive, with potential for increased margins as capacity utilization improves [18] - Construction timelines have marginally improved post-COVID, but substantial demand for capacity creation means timelines have not changed materially [28] Other Important Information - The interest from capital providers remains stable, with no significant changes in the availability of resources such as land and power [27] Q&A Session Summary Question: What drove the decline in network services this quarter? - There was no revenue decline, but substantial expenses were incurred for new capacities leased for future business requirements [10] Question: Can you discuss the dynamics of data center services and the roadmap for the next fiscal year? - Data center revenues have a secular growth trend, with two new facilities recently going live, and the roadmap includes further capacity expansion [12][13] Question: What are the expectations for capital expenditure in fiscal twenty-six? - Capital expenditure will be marginally higher compared to fiscal twenty-five [14] Question: What is the demand mix expected to be driven by in the future? - Short-term demand will be driven by international hyperscalers, while medium to long-term growth will see more Indian enterprise consumption [22] Question: How has the construction timeline changed in the past six to twelve months? - Construction timelines have marginally improved compared to the post-COVID period, but substantial demand for capacity creation remains [28]