Sify Technologies reported a 13% increase in revenue to INR 4,487 million for the fiscal year, alongside a significant 31% rise in EBITDA to INR 9,871 million. However, the company also faced losses, with a pre-tax loss of INR 941 million and a post-tax loss of INR 1,366 million. Management announced plans to nearly double its revenue-generating data center capacity, which will drive a substantial increase in capital expenditures, expected to exceed INR 13,282 million in the upcoming fiscal year.
This expansion aligns with a favorable regulatory environment, including a new 20-year tax holiday for foreign cloud service providers utilizing Indian data centers. The company is actively engaging with Middle Eastern clients, indicating a potential boost in demand for its data center and network services. Despite challenges in the digital services segment, Sify’s network services and data center colocation services showed robust growth.
Market professionals should note Sify’s strategic positioning in the expanding Indian digital ecosystem, which may enhance its competitive edge and investor appeal as it ramps up capacity and operational efficiency.
Source: fool.com