SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT
TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2019
Commission File Number 000-27663
SIFY TECHNOLOGIES LIMITED
(Translation of registrant’s name into English)
Tidel Park, Second Floor
No. 4, Rajiv Gandhi Salai, Taramani
Chennai 600 113, India
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F þ Form 40 F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). Yes ¨ No þ
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7). Yes ¨ No þ
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No þ
If “Yes” is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b). Not applicable.
Results of Operations and Financial Condition
On April 22, 2019, Sify Technologies Limited announced its consolidated unaudited results under the International Financial Reporting Standards for the fiscal year 2018-2019.
A copy of the press release is attached hereto as Exhibit 99.1, which exhibit shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: April 22, 2019
|SIFY TECHNOLOGIES LIMITED|
|By:||/s/ MP Vijay Kumar|
|Name: MP Vijay Kumar|
|Title: Chief Financial Officer|
Exhibits filed with this Report
|99.1||Press Release dated April 22, 2019|
|For immediate release Chennai, India, April 22, 2019|
Sify reports Revenues of INR 21547 Million for Financial Year 2018-19
EBITDA for the year stood at INR 3122 Million
Net Profit for the year was INR 1069 Million
The Board has recommended a dividend of 12%
Mr. Raju Vegesna, Chairman, said, “The last two years has seen private Indian enterprises, and the government, rethink the role of IT within their organisation. While there is continued aggression in their adoption, we are seeing a distinct maturity in the profile of services being contracted. The wisdom to contract with a single service provider is also allowing global MNCs entering India to shrink their go-to-market time.
Our focus, this upcoming year, will be to solicit disruptive contracts that would help us build a unique portfolio of knowledge-driven Cloud and Managed services”
Mr. Kamal Nath, CEO, said, "With Cloud@Core at the heart of most of our service lines, over the past year, we have been able to establish our strategic relevance to customers in their Digital Transformation journey. Today we are one of the few Indian companies which serves the entire cloud spectrum of Cloud Enabling, Cloud Inspired, Cloud Pure and Cloud Enhanced services.
These have also strongly supported the growth of our Telecom business around the SD WAN, Cloud Interconnects and Intelligent Edge networks.”
Mr. M P Vijay Kumar, CFO, said, “Our revenue growth is lower than the prior year due primarily to the expiration of a large government multi-year services contract. Excluding this impact, the overall revenue growth was in line with last year’s growth. In line with our focus on cash management, we are also taking a conscious business decision to reduce exposure to contracts with extended working capital cycle. The network and data center services continue to see demand and we are expanding on the capacity. We continue to make investments in our people and tools that complement digital transformation services for our clients. We will, as in the past, keep a tight leash on our costs and the turnaround time.
The Board has recommended a dividend of 12 % subject to approval from shareholders.
Cash balance at the end of the year was INR 2248 Million”
Unaudited Consolidated Income Statement as per IFRS
(In INR millions)
|Quarter ended||Quarter ended||Year ended||Year ended|
|Cost of Revenues||(3,546||)||(4,093||)||(13,602||)||(13,435||)|
|Selling, General and Administrative Expenses||(1,255||)||(1,231||)||(4,823||)||(4,395||)|
|Depreciation and Amortisation expense||(394||)||(374||)||(1,533||)||(1,755||)|
|Net Finance Expenses||(199||)||(139||)||(682||)||(368||)|
|Other Income (including exchange gain)||77||36||217||190|
|Other Expenses (including exchange loss)||-||-||(52||)||-|
|Profit before tax||306||261||1,072||923|
|Income tax expense||(3||)||(0||)||(3||)||(0||)|
|Profit for the period||303||261||1,069||923|
|Profit attributable to:|
|Reconciliation with Non-GAAP measure|
|Profit for the period||303||261||1,069||923|
|Depreciation and Amortisation expense||394||374||1,533||1,755|
|Net Finance Expenses||199||139||682||368|
|Other Expenses (including exchange loss)||-||-||52||-|
|Income tax expense||3||0||3||0|
|Other Income (including exchange gain)||(77||)||(36||)||(217||)||(190||)|
The primary growth drivers in the markets are cloud adoption led by digital initiatives and transformation. This trend is triggering movement of workloads from on-premise Data Centres to hyperscale Public Cloud and hosted Private Cloud in varied degrees, based on the digital objectives of the enterprises. This in turn, is triggering transformation of the traditional network architecture, and transformation at the edge which connects the end user. The need for digital services like analytics, data lakes, IOT etc are shifting the balance to adoption of hyperscale Public Cloud vs Private cloud. Collectively, these trends are generating opportunities for full scale Cloud, DC and Network service providers with digital services skills.
KEY WINS AND BUSINESS HIGHLIGHTS
|·||25 prominent customers signed to have their workload migrated from their on-premise DC to multiple Clouds platforms including Sify Cloud Infinit, AWS and Azure. These cover key verticals, such as Power, Insurance, IT, Logistics, Real estate, Media, Healthcare, Mobility solutions, Enterprise messaging and IT risk management.|
|·||21 major logos signed up for greenfield Cloud implementation from verticals such as eCommerce Logistics, Investment Finance, IT, Manufacturing, Retail, Consulting and Healthcare among others.|
|·||16 major signups were recorded for Disaster Recovery as a Service. Among them were clients from retail Home Appliances, Automobile Finance, Automation Design, IT and Home Finance.|
|·||11 customers moved from competitor DC to Sify DC while 10 customers moved from their on-premise DC to Sify DC across Power, IT, Retail, Media and Communications and Healthcare verticals.|
|·||3 State Governments and a SmartCity in Central India contracted to have Private Cloud commissioned at the DCs under the National eGovernance Plan.|
|·||30 prominent logos from across Manufacturing, Power, Energy, IT infra and Government signed up for SAP services.|
|·||3 regional TV networks and one Daily publication signed up for CDN services on AWS.|
|·||Multiple companies signed up for security services from among a Hospitality, Banking, Insurance, Digital wallets, Technology and Logistics sectors.|
|·||The online assessment business successfully conducted more than 3.5 million Cloud based tests.|
|·||The Telecom centric Services added 962 new customers in the year across various verticals and segments.|
|·||During the year, there was significant expansion of the next generation fiber access networks across 4 key markets covering Data Centers and SEZs. The expansion is being driven by the demand from customers to connect to cloud and data centers as they embark on the cloud transformation journey.|
|·||During the year, Sify expanded its GlobalCloudConnect (GCC) platform and will now offer private connections to Google Cloud in India, in addition to AWS and Microsoft Azure. Enterprises can now easily connect from 47 data centers and their offices in over 1600 cities across India. Further expansion of the AWS interconnects was completed during the year providing customers with more choices.|
|·||During the year, the business launched its Managed and secure SDWAN service and is seeing increasing demand from customers for this service as they transform their traditional enterprise WAN to a cloud centric WAN. Some prominent names added to their rooster include a Security and Cash logistics, a Public Sector Financial Institution focused on small and medium industries, a government owned Export Credit Insurance company and one of the largest Public Sector Power generation and distribution companies.|
|·||The business saw growth in its Edge Connect portfolio (Intelligent Edge) with customers increasingly viewing the edge as a key area of innovation in a digital enterprise. Key wins include a large German engineering conglomerate, one of India’s largest manufacturing companies, a leading FMCG brand and the back office of a large US based bank.|
|·||The business also saw steady progress in its IoT business. Key wins included contracts from a logistics provider and a farm equipment manufacturer in India.|
|·||The business also won key contracts during the year from global customers including two new CDNs that have deployed in India, repeat orders for large Data Center Interconnect from two leading global content providers and a contract from a global cloud-based security provider for deployment in India.|
About Sify Technologies
Sify is the largest ICT service provider, system integrator and all-in-one network solutions company on the Indian subcontinent. We’ve also expanded to the United States, with headquarters in the heart of California’s Silicon Valley.
Over 10000 businesses have become Sify customers. We also partner with other major network operators to deliver global network solutions. Our customers can access Sify services via India’s largest MPLS network. Among the very few Enterprise class players in India, Sify, today has presence in more than 1600 cities in India and in North America, the United Kingdom and Singapore.
Sify, Sify Technologies, and www.sifytechnologies.com are registered trademarks of Sify Technologies Limited
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Sify undertakes no duty to update any forward-looking statements.
For a discussion of the risks associated with Sify’s business, please see the discussion under the caption “Risk Factors” in the company’s Annual Report on Form 20-F for the year ended March 31, 2018, which has been filed with the United States Securities and Exchange Commission and is available by accessing the database maintained by the SEC at www.sec.gov, and Sify’s other reports filed with the SEC.
For further information, please contact:
Mr. Praveen Krishna
Investor Relations & Public Relations
+91 44 22540777 (ext.2055)
Grayling Investor Relations