Sify net drops 98 per cent - CIOL News Reports

Sify net drops 98 per cent

Revenue for the year ended March 31, 2008, at $150.59 million

Friday, May 30, 2008

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CHENNAI, INDIA: Sify Technologies Limited has reported a net profit of $0.12 million for the year ended March 31, 2008, a decrease of over $6.25 million registered in the previous fiscal.

The net profit includes one-time benefit of $3.1 million on account of a change in the depreciation policy.

Net profit was under pressure due to lower margins due the sales mix, as well as a notional loss incurred on account of the strong rupee against dollar, according to the company.

Revenue for the year stood at $150.59 million, 11 per cent higher than the previous year.

While the Enterprise and International segments registered growth at 27 per cent and 36 per cent respectively, the consumer segment dipped by 20 per cent over the previous year.

The company ended the quarter with a cash balance of $22.21 million after capital expenditures of $20.58 million during the year.

This will be augmented with the infusion of $57 million dollars, which is currently under process.

"We expect the results of our restructuring of the consumer businesses to be felt in the current financial year after the second quarter. Preparations are already underway for the re-launch of our chain of retail outlets offering online services with a new brand name, as well as our broadband services. The portal will follow towards the middle of this financial year," said Raju Vegesna, CEO and MD, Sify Technologies.

"We have invested substantially during the year on network expansion and data center space. We will continue to invest in both this coming year, as well as in building Sify's headquarters in Chennai with sophisticated network command centers and additional data center space. This will entail an investment of about $125 million, including the current expansion. These investments are being made on the back of robust demand for enterprise services across both connectivity and hosting services. We will also invest in re-launching our consumer businesses during the year to set them on a growth trajectory," said MP Vijay Kumar, CFO, Sify.

©CyberMedia News

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