Sify revenue grows 29% to $82.8 M

By siliconindia staff writer   |   Wednesday, 20 April 2005, 07:00 Hrs
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CHENNAI:Sify has reported revenues of $82.8 million for the year ended March 2005. this is about 29 percent than the previous years.

Sify’s 2004-05 cash profits (adjusted EBITDA) increased 168 percent to $5.17 million, Net Loss reduced by 17 percent to $7.05 million.

Despite significant capital expenditures during the year $11.4 million and the $2.3 million payment for IP-VPN license entry fee, Sify ended the year with a cash balance of over $31 million, just $2 million lower than the cash balance at the end of previous year.

R. Ramaraj, Managing Director and CEO, said, “I am pleased to report that we have continued our growth momentum with a 29 percent increase in revenues over last year. During the year, we have invested to strengthen our capabilities to aggressively grow our enterprise business, broadband services, portal and our international business. These investments have resulted in a substantially expanded network across 99 cities, and a broader customer base across both the business and consumer segments”.

A company statement said the corporate services comprised 56 percent revenues for the year, servicing over 1000 clients. During the year, Sify won an order from Symbian, which sells operating systems for mobile devices, through the formers collaboration with global crossing.

In the ITeS sector, substantial repeated orders were received from GE, Google, Hutch, Novell, Spectramind and Sapient. New wins included CSC, HCL Technologies, Omniglobe and Xansa.

Sify’s retail Internet access business accounted for 39 percent of the company’s annual revenue. Internet telephony grew more than 25 percent over the previous quarter to reach 11.8 million minutes during the quarter ended March 2005.

Subscribers to Sify’s broadband internet access to homes exceeded 89,000 and the services are now available in 52 cities. Revenues from dial up business, though continued to decline, while the subscriber base decreased 5 percent for the quarter.

On IP-VPN licensing, Sify has pointed out that the industry association ISPAI has launched a legal challenge contesting DoT’s insistence that ISP pays up license fees for providing this service. “To date, the DoT has not issued the terms of the license, nor has it come out with a definition of AGR”, the press statement said.

In December last year, Sify’s shareholders approved a resolution to enable the conversion of up to 15.72 million Indian equity shares to AD Subsequently, the company had registered for the resale of up to 4,538,200 Indian equity shares in the form of AD

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