Why Indian IT Company Sify Technologies Shares Are Sinking Today

Sify Technologies Ltd SIFY shares are trading lower after the company reported third-quarter sales results.

The company reported a revenue decline of 3% year-on-year to INR8.66 billion. Revenue from Data Center services rose 13% Y/Y, Digital services fell by 22% Y/Y, and Network services grew by 4% Y/Y.

EBITDA improved 4% to INR1.69 billion in the quarter. The company reported a loss after tax of INR(14) million vs. a profit of INR258 million in the prior-year quarter due to higher depreciation and interest costs.

As of Dec 31, 2023, Sify provided services via 974 fiber nodes nationwide (+15% Y/Y) and deployed 6,920 contracted SDWAN service points across the country.

The company’s cash balance at the end of the quarter was INR6.04 billion.

M P Vijay Kumar, ED & Group CFO, said, “We continue to invest in bringing more Data Center capacity to the market, extending our network footprint and skilling our people on new tools. These investments are being made ahead of the curve and will reflect on our net profit for the near future.”

Price Action: SIFY shares are down 10.29% at $1.57 on the last check Thursday.