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 October 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 October 18, 2019, Sify Technologies Limited announced its consolidated unaudited results under the International Financial Reporting Standards for the quarter ended September 30, 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: October 18, 2019
|SIFY TECHNOLOGIES LIMITED|
|By:||/s/ M P Vijay Kumar|
|Name:||M P Vijay Kumar|
|Title:||Chief Financial Officer|
Exhibits filed with this Report
|99.1||Press Release dated October 18, 2019|
|For immediate release Chennai, India, October 18, 2019|
Sify reports Revenues of INR 5807 Million
Second Quarter of FY 2019-20
EBITDA for the Quarter stood at INR 1061 Million
Mr. Raju Vegesna, Chairman, said, “With the rapid adoption of digital technology across India, Global Enterprises and domestic players now see a market of 1.3 billion people who have to be quickly transitioned to the reality of a digital economy. In their pursuit to do so, they will draw upon the strength of local IT enablers who have the capability and local knowledge to execute”.
That is the opportunity in front of Sify today.”
Mr. Kamal Nath, CEO, said, "We continue to see increasing Cloud adoption in Enterprises as well as Government clients. Our investments, skills and partnerships are attracting clients who are renewing their erstwhile on-prem outsourcing, people heavy contracts and looking for hybrid or multi-cloud flavoured models. We are also able to bring in benefits to clients with our hyperscale network services which enables cloud adoption. The true value of Sify’s ICT services is being unleashed in Cloud transformation projects”.
Mr. M P Vijay Kumar, CFO, said, “With the focus on digital transformation, Enterprises are actively engaging for multiple ICT services for the operational benefits of our comprehensive set of services. We are seeing our managed services on top of the DC and Cloud as having the most traction among them. While we expand our capacity, both data centers and network infrastructure, we continue to exercise prudence in our capital investments.
This financial year, the increase in depreciation and interest is partly due to IFRS 16 becoming applicable for leases and the tax expense is due to company being subject to income tax as the benefit of past losses has been utilized in full until last year.
Our cash balance at the end of the quarter stands at INR 1375 Million”.
Unaudited Consolidated Income Statement as per IFRS
(In INR millions)
|Quarter ended||Quarter ended||Quarter ended|
|Cost of Revenues||(3,650||)||(3,470||)||(3,550||)|
|Selling, General and Administrative Expenses||(1,096||)||(1,268||)||(1,094||)|
|Depreciation and Amortisation expense||(527||)||(384||)||(506||)|
|Net Finance Expenses||(261||)||(175||)||(64||)|
|Other Income (including exchange gain)||15||67||28|
|Other Expenses (including exchange loss)||(8||)||(26||)||(12||)|
|Profit before tax||280||253||320|
|Income tax expense||(89||)||-||(104||)|
|Profit for the period||191||253||216|
|Profit attributable to:|
|Reconciliation with Non-GAAP measure|
|Profit for the period||191||253||216|
|Depreciation and Amortisation expense||527||384||506|
|Net Finance Expenses||261||175||64|
|Other Expenses (including exchange loss)||8||26||12|
|Income tax expense||89||-||104|
|Other Income (including exchange gain)||(15||)||(67||)||(28||)|
The primary growth driver in the market continues to be cloud adoption, led by digital initiatives and transformation. This trend is triggering movement of workloads from on-premise Data Centers to hyperscale Public Cloud and hosted Private Cloud in varied degrees, based on the digital objectives of the Enterprises. This results in 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.
Highlights of our major wins in the quarter include:
|·||Customers choosing Sify for migration of their on-premise data center to multi-cloud platforms like Cloudinfinit, AWS and Azure. They also entrusted Sify with management and security.|
|·||Customers choosing Sify as their DC Hosting partner as they embrace hybrid cloud strategy.|
|·||Customers choosing Sify as their Digital services partner.|
|·||Customers choosing Sify as their Network Transformation and Management partner as they migrate to Cloud-ready network.|
A consolidated summary of the key highlights during the quarter is noted below:
Data Center Centric IT Services highlights include:
|·||11 customers contracted to have their workload migrated from their on-premise DC to multiple clouds. These cover key verticals such as Banking, ITeS, Manufacturing, Agri-sciences and Logistics.|
|·||4 customers contracted with Sify for greenfield Cloud implementation from verticals such as a PSU, Logistics, Media and IT.|
|·||18 new customers contracted for services like DRaaS, PaaS and IaaS on public Cloud and Cloudinfinit platform.|
|·||4 customers, including one of India’s largest private banks, moved their IT infrastructure from competitor DC to Sify DC, while 3 customers migrated from their on-premise DC to Sify DC. These were across verticals such as Banking and Financial services, Heavy Industry, Manufacturing and a Commodities exchange platform.|
|·||One of India’s largest MNCs contracted Sify to modernize their Data center.|
|·||One of India’s largest private banks contracted for the design, supply and deployment of their on-premise DC.|
|·||18 customers contracted for Cloud managed services.|
|·||A public sector bank contracted for a multi-year deployment and management of their Security Operations center.|
|·||24 customers contracted for a complete technology refresh of their security services.|
|·||Telecom Centric Services added 144 new customers in the quarter.|
|·||A global technology corporation contracted with Sify for interconnects to the Cloud.|
|·||A public sector Insurance company contracted for a complete network transformation that includes a secondary network, SD-WAN and Managed services.|
|·||A public sector industry major, a private bank and a financial company contracted for managed and secure SD-WAN services.|
|·||Another public sector insurance company signed up for integrated network transformation project.|
|·||20 customers contracted for collaboration services from across verticals like technology, insurance, banking, manufacturing and the government.|
|·||Sify launched Carrier Ethernet during the quarter.|
About Sify Technologies
Sify Technologies is the India’s most comprehensive largest ICT service & solution provider. With Cloud at the core of our solutions portfolio, Sify is focussed on the changing ICT requirements of the emerging Digital economy and the resultant demands from large, mid and small-sized businesses.
Sify’s infrastructure comprising the largest MPLS network, top-of-the-line DCs, partnership with global technology majors, vast expertise in business transformation solutions modelled on the cloud make it the first choice of start-ups, incoming enterprises and even large Enterprises on the verge of a revamp,
More than 10000 businesses across multiple verticals have taken advantage of our unassailable trinity of Data Centers, Networking and Security services and conduct their business seamlessly from more than 1600 cities in India. Internationally, Sify has presence across North America, the United Kingdom and Singapore.
Sify, www.sify.com, 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, 2019, 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:
Sify Technologies Limited
Mr. Praveen Krishna
Grayling Investor Relations