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Sify Technologies Limited (SIFY)
:SIFY
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Sify Technologies
(NASDAQ:SIFY)
65Neutral
Sify Technologies (SIFY) vs. S&P 500 (SPY)
Market Cap
$317.78M
Dividend YieldN/A
Average Volume (3M)94.93K
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth12.76%
EPS GrowthN/A
CountryUS
Employees4,319
SectorCommunication Services
Sector Strength70
IndustryTelecommunications Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding72,221,900
10 Day Avg. Volume45,275
30 Day Avg. Volume94,930
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.77
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Sify Technologies Business Overview & Revenue Model
Company DescriptionSify Technologies Limited provides integrated ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The Network Centric Services segment offers internet, internet protocol and multi-protocol label switching virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, managed services, dedicated internet access, and proactive monitoring and management of the network and devices. The Data Center Services segment provides co-location services; and managed data center services, such as storage and back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. The Digital Services segment offers managed network services; EDGE services; cloud and managed services including cloud and storage solutions, managed services, value added services, domestic and international managed services; and technology integration services include system integration, data centers build, network, security solutions, remote and onsite infrastructure management, managed security services, as well as sale of hardware and software. This segment also offers applications integration services, such as talent management, supply chain management, online assessment, web development, document management, content, digital signature, digital certificate-based authentication, supply chain solutions, content management, sale of digital certificates; and sale, implementation, and maintenance of industry specific applications; supply chain software, and eLearning software development services; and operates web portals. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was incorporated in 1995 and is headquartered in Chennai, India.
How the Company Makes MoneySify Technologies generates revenue through multiple streams that leverage its comprehensive IT service offerings. The primary revenue sources include network services, where Sify provides managed network and security services to businesses; data center services, offering colocation, hosting, and storage solutions; and cloud and managed services, which involve cloud infrastructure and platform services. Additionally, Sify earns from digital services like application modernization, IoT, and analytics, as well as technology integration services, which encompass system integration and IT consulting. The company's earnings are bolstered by strategic partnerships with global technology firms and a robust customer base seeking reliable digital transformation solutions.
Sify Technologies Financial Statement Overview
Summary
Sify Technologies shows strong revenue growth but faces challenges with declining profit margins and profitability metrics. The balance sheet indicates stable leverage, though asset utilization could improve. Cash flow analysis reveals solid operational cash generation, but negative free cash flow suggests the need for better capital management.Income Statement
Sify Technologies has shown a consistent increase in total revenue over the years, with a robust revenue growth rate of 6.66% from 2023 to 2024. However, net profit margins have been under pressure, declining to 0.14% in 2024 from 2.02% in 2023. The gross profit margin is healthy at 37.2%, but the decline in both EBIT and EBITDA margins from previous years indicates rising costs or operational inefficiencies.65
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio of 1.15, indicating a balanced leverage. However, the equity ratio has seen a slight decrease to 33.85% in 2024. Return on equity has significantly dropped to 0.20%, suggesting reduced profitability relative to equity. The financial position appears stable but could benefit from improved efficiency in asset utilization.70
Positive
Cash Flow
Sify Technologies exhibits a concerning trend in cash flow, with a negative free cash flow in 2024. The operating cash flow to net income ratio is strong at 101.82, indicating good cash generation capability. However, the free cash flow growth rate is negative, signaling potential issues in managing capital expenditures effectively.55
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 36.51B | 35.63B | 33.40B | 27.03B | 24.32B | 22.95B |
| Gross Profit | |||||
| 13.54B | 13.26B | 12.03B | 10.98B | 9.62B | 8.59B |
| EBIT | |||||
| 2.00B | 2.17B | 2.45B | 2.87B | 2.39B | 1.88B |
| EBITDA | |||||
| 6.00B | 5.75B | 6.50B | 6.18B | 5.22B | 4.25B |
| Net Income Common Stockholders | |||||
| -66.00M | 48.94M | 674.52M | 1.26B | 1.53B | 705.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 517.79M | 5.39B | 3.65B | 3.78B | 5.10B | 2.32B |
| Total Assets | |||||
| 9.33B | 70.98B | 57.40B | 47.07B | 36.66B | 34.26B |
| Total Debt | |||||
| 2.66B | 27.59B | 22.93B | 17.46B | 11.74B | 11.16B |
| Net Debt | |||||
| 2.15B | 23.48B | 19.28B | 13.68B | 6.63B | 8.85B |
| Total Liabilities | |||||
| 5.16B | 46.95B | 40.26B | 32.59B | 23.50B | 22.90B |
| Stockholders Equity | |||||
| 4.17B | 24.03B | 17.15B | 14.48B | 13.17B | 11.35B |
| Cash Flow | Free Cash Flow | ||||
| 57.76M | -7.39B | -4.87B | -5.13B | 3.21B | 541.25M |
| Operating Cash Flow | |||||
| 57.76M | 4.98B | 8.34B | 2.24B | 6.97B | 5.04B |
| Investing Cash Flow | |||||
| 0.00 | -12.26B | -13.59B | -7.59B | -3.62B | -4.33B |
| Financing Cash Flow | |||||
| 0.00 | 7.44B | 4.94B | 4.17B | 618.37M | 3.92M |
Sify Technologies Technical Analysis
Positive
4.65
Price Trends
4.24
Positive
3.69
Positive
3.15
Positive
Market Momentum
0.02
Positive
48.66
Neutral
21.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIFY, the sentiment is Positive. The current price of 4.65 is above the 20-day moving average (MA) of 4.59, above the 50-day MA of 4.24, and above the 200-day MA of 3.15, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIFY.
Sify Technologies Risk Analysis
Sify Technologies disclosed 78 risk factors in its most recent earnings report. Sify Technologies reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sify Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $245.50B | 27.04 | 20.02% | 2.59% | -5.34% | -30.57% | |
67 Neutral | $12.12B | 25.02 | 10.66% | ― | 4.70% | -7.33% | |
65 Neutral | $317.78M | ― | 0.20% | ― | 12.76% | ― | |
60 Neutral | $12.06B | 42.06 | 6.21% | 2.43% | -8.82% | -10.01% | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% | |
57 Neutral | $1.53B | ― | -24.41% | ― | -1.55% | -250.10% | |
45 Neutral | $1.57B | ― | -90.26% | ― | -12.12% | -469.62% |
* Communication Services Sector Average
Performance Comparison
SIFY
Sify Technologies
4.65
-2.97
-38.98%
AKAM
Akamai
78.78
-27.21
-25.67%
CSCO
Cisco Systems
61.82
14.80
31.48%
INFN
Infinera
6.64
0.69
11.60%
JNPR
Juniper Networks
36.07
-0.02
-0.06%
NTCT
Netscout Systems
21.57
0.92
4.46%
Sify Technologies Earnings Call Summary
Earnings Call Date: Jan 17, 2025 | % Change Since: 46.23% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and network infrastructure growth, along with significant data center expansion, indicating positive business developments. However, these were weighed down by losses before and after tax, increased SG&A costs, and a loss in Digital Services due to strategic investments. The sentiment reflects a balanced outlook with substantial growth efforts impacted by current financial losses.Highlights
Revenue Growth
Revenue was INR 10,491 million, an increase of 21% over the same quarter last year.
Data Center Expansion
Commissioned 5-megawatt of additional data center capacity during the quarter. Currently, there is a total installed capacity of 120-megawatt, with 110-megawatt contracted.
Network Infrastructure Expansion
Sify provides network infrastructure services via 1,109 fiber nodes, a 14% increase over the same quarter last year. Growth driven by investment in fiber network across 17 cities.
Sustained EBITDA Growth
EBITDA was INR 1,914 million, an increase of 13% over the same quarter last year.
Lowlights
Loss Before and After Tax
Loss before tax was INR 119 million, and loss after tax was INR 258 million.
Increased SG&A Costs
Significant growth in SG&A costs due to strengthening of leadership team across businesses.
Digital Services Loss
Digital Services posted a loss due to revenue mix change and investment in leadership and upskilling.
Increased Capital Expenditure
Capital expenditure during the quarter was INR 3,343 million.
Company Guidance
During the Sify Technologies earnings call for the third quarter of fiscal year 2024-2025, several key financial metrics and strategic initiatives were discussed. The company's revenue for the quarter was reported at INR 10,491 million, marking a 21% increase from the same quarter last year. EBITDA rose by 13% year-over-year to INR 1,914 million. However, Sify reported a loss before tax of INR 119 million and a loss after tax of INR 258 million. Capital expenditure during the quarter amounted to INR 3,343 million, and the cash balance at the end of the quarter was INR 5,327 million. The revenue distribution for the quarter was 41% from Network Infrastructure Services, 36% from Data Center Colocation Services, and 23% from Digital Services. Notably, Sify commissioned an additional 5-megawatt of data center capacity. The company also highlighted its adoption of IFRS 18 for financial reporting and its investment in AI capabilities, with strategic plans to expand its data center and network infrastructure to support future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.