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News >> Technology >>
Sify on profitability path, to focus on broadband
By siliconindia staff writer
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Friday, 10 October 2003, 19:30 IST
NEW DELHI: After posting losses throughout, ever since it began operations four years ago, Nasdaq-listed Internet services company Sify may post net profits in the "not too distant future".
"We will be in net profit in not too distant future. We have to reach a level of EBIDTA of Rs 15-30 crore to declare net profits and in the fourth quarter of the last year, we became EBIDTA positive. We believe that we are on that path to making that profit, George Zacharias, president and COO, Sify said on the sidelines of a meeting.
Being a debt-free company, Sify does not have interest tax, but depreciation and amortisation on the large investment that it had made on its networks would be Rs 20 crore a quarter.
According to US GAAP, to be able to declare a net profit, the company needs to have an EBIDTA (earnings before interest, depreciation, tax and amortisation) between Rs 15-Rs 30 crore, he said.
"Many companies take four to five years to make profit. We are a four year-old company and are probably towards the ending stage of the gestation period", he said.