Sales Slump Leads to Share Price Drop
Sify Technologies Ltd SIFY shares are trading lower after the company reported third-quarter sales results.
Revenue Decline and Profit Woes
The company reported a revenue decline of 3% year-on-year to INR8.66 billion. Revenue from Data Center services rose 13% Y/Y, Digital services fell by 22% Y/Y, and Network services grew by 4% Y/Y.
Concerns Over EBITDA and Cash Balance
EBITDA improved 4% to INR1.69 billion in the quarter. The company reported a loss after tax of INR(14) million vs. a profit of INR258 million in the prior-year quarter due to higher depreciation and interest costs.
Challenges and Commitments
As of Dec 31, 2023, Sify provided services via 974 fiber nodes nationwide (+15% Y/Y) and deployed 6,920 contracted SDWAN service points across the country.
Future Investments and Reflections
M P Vijay Kumar, ED & Group CFO, said, “We continue to invest in bringing more Data Center capacity to the market, extending our network footprint and skilling our people on new tools. These investments are being made ahead of the curve and will reflect on our net profit for the near future.”
Share Price Plunge
Price Action: SIFY shares are down 10.29% at $1.57 on the last check Thursday.
