Chennai: “The current scenario under lockdown has created challenges in the short term and opportunities in the mid and long term for us,” said Sify Technologies CEO Kamal Nath on Wednesday as the company announced its annual financial results.
The company reported a 7% increase in revenue at Rs 22,952 million while EBITDA for the year was Rs 4,076 million, a 31% increase over last year. However, net profit decreased by 34% and shrunk to Rs 706 million.
Kamal Nath said the company is remotely managing mission-critical infrastructure of customers who are serving the core industries and consumers. Further, he said the current situation has also stimulated conversations on the need for scalable, flexible IT infrastructures that can be consumed on-demand.
“We are seeing the Cloud sceptical customers showing enthusiasm on cloud adoption to ease their capex cost and cash flow. Organizations are reviewing how to provide secured and productive “work from home” deployment. As a Digital ICT Service Provider, we see this as an opportunity to further boost utilization of our investments and enhancement of our services revenue,” he said.
CFO MP Vijay Kumar said that EBITDA growth has been healthy and the company will continue to spend for the future – both in people and tools to increase digital transformation service capabilities. He added that the net profit was lower as the company is now subject to full taxes as past tax benefits have expired.
“As global trade shrinks substantially and overall demand and supply chain recovery is expected to take time, we are preparing the organization for new contracts to be slow to conclude as some of our clients are likely to take time to regain their momentum in the market,” he said.
Owing to the economic conditions and uncertainty on timing of the economy normalizing, the Board did not recommend the payment of dividend this year and instead advised capital to be conserved and used for financing expansion projects. The company’s cash balance at the end of the year was Rs 2,651 million.