Sify Technologies Ltd (SIFY) 2024 Q1 法說會逐字稿

Greetings. Welcome to the Sify Technologies Financial Results for First Quarter and Fiscal Year 2023-2024. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Praveen Krishna. You may begin.

問候。歡迎閱讀 Sify Technologies 2023-2024 年第一季及財政年度財務表現。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給主持人普拉文克里希納 (Praveen Krishna)。你可以開始了。

Thank you, Holly. I would like to extend a warm welcome to all our participants on behalf of Sify Technologies Limited. I'm joined on the call today by Raju Vegesna, our Chairman; M.P. Vijay Kumar, Executive Director and Group CFO; and Kamal Nath, CEO.

謝謝你，霍莉。我謹代表Sify Technologies Limited向各位與會人士表達熱烈的歡迎。我們的主席 Raju Vegesna 也參加了今天的電話會議。議員Vijay Kumar，執行董事兼集團財務長；和執行長 Kamal Nath。

Following our comments on the results, there will be an opportunity for questions. If you do not have a copy of our press release, please call Grayling Global at (646) 284-9400, and we'll have one sent to you. Alternatively, you may obtain a copy of the release at the Investor Information section on the company's corporate website at www.sifytechnologies.com/investors. A replay of today's call may be accessed by dialing in on the numbers provided in the press release or by accessing the webcast in the Investor Information section of the Sify corporate website.

在我們對結果發表評論後，將有機會提問。如果您沒有我們的新聞稿副本，請致電 Grayling Global，電話 (646) 284-9400，我們將向您發送一份新聞稿。或者，您也可以在公司網站 www.sifytechnologies.com/investors 的投資者資訊部分取得該新聞稿的副本。可以透過撥打新聞稿中提供的號碼或造訪 Sify 公司網站投資者資訊部分的網路廣播來重播今天的電話會議。

Some of the financial measures referred to during this call and in the earnings release may include non-GAAP measures. Sify's results for the year are according to the International Financial Reporting Standard, or IFRS, and will differ somewhat from the GAAP announcements made in previous years. A presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP and a reconciliation of such non-GAAP measures and of the differences between such non-GAAP measures and the most comparable financial measures calculated and presented in accordance with GAAP will be made available on Sify's website.

本次電話會議和收益發布中提到的一些財務指標可能包括非公認會計準則指標。 Sify今年的業績是根據國際財務報告準則（IFRS）編製的，與往年公佈的GAAP公告略有不同。根據 GAAP 計算和列報的最直接可比較財務指標的列報以及此類非 GAAP 指標的調整表，以及此類非 GAAP 指標與根據 GAAP 計算和列報的最可比較財務指標之間差異的調整表將在Sify 網站上提供。

Before we continue, I'd like to point out that certain statements contained in the earnings release and on this conference call are forward-looking statements rather than historical facts and are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks protection afforded by the Private Securities Litigation Reform Act of 1995. These risks include a variety of factors, including competitive developments and risk factors listed from time to time in the company's SEC reports and releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements but are not intended to represent the complete list of all risks and uncertainties inherent to the company's business.

在我們繼續之前，我想指出，收益發布和本次電話會議中包含的某些陳述是前瞻性陳述，而不是歷史事實，並且受到風險和不確定性的影響，可能導致實際結果與預期結果存在重大差異。描述。對於此類前瞻性陳述，本公司尋求 1995 年《私人證券訴訟改革法案》提供的保護。這些風險包括多種因素，包括競爭發展以及公司在 SEC 報告和新聞稿中不時列出的風險因素。這些清單旨在確定可能導致實際結果與前瞻性陳述中描述的結果有重大差異的某些主要因素，但並不代表公司業務固有的所有風險和不確定性的完整清單。

I would now like to introduce Mr. Raju Vegesna, Chairman of Sify Technologies Limited. Chairman?

現在我想介紹一下Sify Technologies Limited董事長Raju Vegesna先生。總統?

All you know, we gave a growth story. This is an exciting time India is going through. And we have to build our services and how do we make a stable destination, the availability of the relevant resources tools and significant untapped demand for the Indian enterprises. The government has been consistent using IT as an enablement tool to implement [thoughful] measures and this is the contributed to a really matured (inaudible) system. And our next phase of the growth will leverage this favorable enrollment by introducing innovative and cost effective to digital forces leases for our customers. (technical difficulty) Our next phase of the growth will leverage this favorable advantage by introducing innovative and cost effective digital solution services for our customers.

你知道，我們講了一個成長故事。印度正在經歷一個激動人心的時刻。我們必須建立我們的服務，如何為印度企業提供穩定的目的地、相關資源工具的可用性以及尚未開發的龐大需求。政府一直堅持使用資訊科技作為實施[深思熟慮的]措施的支持工具，這有助於建立一個真正成熟的（聽不清楚）系統。我們下一階段的成長將利用這項有利的註冊，為我們的客戶引入創新且具成本效益的數位化力量租賃。 （技術難度）我們下一階段的成長將利用這一有利優勢，為客戶推出創新且具成本效益的數位解決方案服務。

Let me now bring Kamal Nath, our CEO, to expand on some of our business highlights for the past quarter. Kamal?

現在讓我請我們的執行長 Kamal Nath 來詳細介紹我們上一季的一些業務亮點。卡邁勒？

Thank you, Raju. As enterprises are pursuing their digital transformation and digitalization objectives, they are also recalibrating their digital infrastructure across hybrid cloud, network, security and edge infrastructures. This is a great opportunity for us to monetize our infrastructure, design for digital IT and transform the way digital infrastructures are managed through our digitalized services. We are topping that up by continuously building our core digital portfolio to support our customers' innovation journey. This portfolio places Sify in a unique position for all around customer engagement across their digital life cycle, which we believe would augment our growth strategy.

謝謝你，拉朱。在企業追求數位轉型和數位化目標的同時，他們也在重新調整混合雲、網路、安全性和邊緣基礎設施的數位基礎設施。對我們來說，這是一個絕佳的機會，可以透過我們的數位化服務實現基礎設施貨幣化、數位 IT 設計以及轉變數位基礎設施的管理方式。我們透過不斷建立我們的核心數位產品組合來補充這一點，以支持客戶的創新之旅。該產品組合使 Sify 在整個數位生命週期的客戶參與方面處於獨特的地位，我們相信這將增強我們的成長策略。

Let me now expand on the business highlights for the quarter. The revenue split between the businesses for the quarter was, data center colocation services at 32%, digital services at 28% and network services at 40%. As on June 30, 2023, if we provide services via 910 fiber nodes across the country, a 10% increase over the same quarter last year. The Network Connectivity service has now deployed 6,541 SG1 service points across the country. During the quarter, Sify has invested USD 193,000 in startups in the Silicon Valley area as part of our corporate venture capital initiative. To date, the cumulative investment stands at USD 5.57 million. A detailed list of our key wins is recorded in our press release, now live on our website.

現在讓我詳細介紹本季的業務亮點。本季各業務的收入分配為：資料中心託管服務佔 32%，數位服務佔 28%，網路服務佔 40%。截至2023年6月30日，如果我們透過全國910個光纖節點提供服務，比去年同季成長10%。網路連線服務現已在全國部署了6,541個SG1服務點。作為我們企業創投計畫的一部分，本季度，Sify 已向矽谷地區的新創公司投資了 193,000 美元。截至目前，累計投資557萬美元。我們的主要勝利的詳細清單記錄在我們的新聞稿中，現在發佈在我們的網站上。

Let me bring in Vijay, our Executive Director and Group CFO, who will elaborate on the financial highlights for the quarter. Vijay?

讓我請我們的執行董事兼集團財務長 Vijay 來詳細介紹本季的財務亮點。維傑？

Thank you, Kamal. Good morning, everyone. Let me briefly -- some of the financial performance for the first quarter of financial year '23, '24. The revenue was INR 8,547 million, an increase of 11% for the same quarter last year (technical difficulty)

謝謝你，卡邁勒。大家，早安。讓我簡單介紹一下 23、24 財年第一季的一些財務表現。營收85.47億印度盧比，較去年同季成長11%（技術難度）

Holly, did the line drop?

霍莉，線路掉線了嗎？

Yes, one moment, I will connect speakers line again.

是的，等一下，我會再次連接揚聲器線。

Connecting again. Please Proceed, Vijay.

再次連接。請繼續，維傑。

EBITDA was INR 1,724 million, an increase of 13% over the same quarter last year. Profit before tax was INR 149 million. And profit after tax was INR 95 million, a decrease of (technical difficulty)

EBITDA 為 17.24 億印度盧比，比去年同期成長 13%。稅前利潤為 1.49 億印度盧比。稅後利潤為9500萬盧比，減少了（技術難度）

It looks like we lost speaker line again. One moment while we reconnect again.

看來我們又失去了揚聲器線。一會兒我們再次重新聯絡。

Holly also connect on the other alternate number I gave you.

霍莉還撥打我給你的另一個備用號碼。

Okay. One moment. Connecting. The speakers line is connected.

好的。一會兒。正在連接。揚聲器線已連接。

Capital expenditure during the quarter was INR 1,436 million. Sify and Sify Infinit Spaces Limited, a wholly owned subsidiary of Sify, which operates data center colocation business have entered into an agreement with Kotak data center fund on July 20, 2023, under which the fund will invest up to INR 6,000 million (technical difficulty)

本季資本支出為 14.36 億印度盧比。 Sify及Sify旗下經營資料中心託管業務的全資子公司Sify Infinit Spaces Limited與Kotak資料中心基金於2023年7月20日簽訂協議，該基金將投資最多60億印度盧比（技術難度）

It looks like we lost the line again. One moment while we reconnect again.

看來我們又掉線了。一會兒我們再次重新聯絡。

Please try and back up number also.

請嘗試也備份號碼。

Okay we have the speaker line reconnected.

好的，我們重新連接揚聲器線。

Sify and Sify Infinit Space Limited, a wholly owned subsidiary of Sify, which operates the data center colocation business have entered into an agreement with a leading investment bank-led fund Kotak Data Center Fund on July 20, 2023, under which the fund will invest up to INR 6,000 million, approximately USD 73 million on today's exchange rate in the form of compulsively convertible debenture of Sify Infinite Spaces Limited. Sify Infinite (technical difficulty)

Sify及Sify旗下經營資料中心主機代管業務的全資子公司Sify Infinit Space Limited與一家領先的投行主導基金Kotak Data Center Fund於2023年7月20日簽訂協議，根據該協議，該基金將投資以Sify Infinite Spaces Limited 的強制可轉換債券的形式發行高達60 億印度盧比，以今天的匯率計算約為7,300 萬美元。 Sify Infinite（技術難度）

One moment. It looks like we lost the speaker line again.

一會兒。看來我們又失去了揚聲器線。

This landline is not even going through.

這條固定電話甚至都打不通。

We have the speaker line connected.

我們已連接揚聲器線。

Sify Infinit Space Limited will use the profits for the expansion of data centers, including land acquisition for new data center capacity, investment in procuring alternate source of power and repayment of debt. Fiscal (technical difficulty)

Sify Infinit Space Limited 將利用所得利潤用於資料中心的擴建，包括為新的資料中心容量徵地、投資採購替代能源以及償還債務。財政（技術難度）

One moment. It looks like we lost the speaker line again.

一會兒。看來我們又失去了揚聲器線。

Holly. Try the other line 2, he is just beside him.

冬青。試試另一條線2，他就在他旁邊。

We have the speaker line reconnected.

我們重新連接了揚聲器線。

Yes. fiscal discipline will remain the corner stone of our growth strategy as we scale investments into our data centers and networks. By judicially allocating investments and resources, we will seamlessly expand our infrastructure in new resources and build competencies and scale. While we expect to see these investments impact profitability in the near term, they should enable us to aggressively pursue digital transformation engagements in the future. We will continue to prioritize resource optimization and sustainability fortifying our (technical difficulty)

是的。隨著我們擴大對資料中心和網路的投資，財政紀律仍將是我們成長策略的基石。透過公正地分配投資和資源，我們將無縫擴展新資源的基礎設施，並建立能力和規模。雖然我們預計這些投資會在短期內影響獲利能力，但它們應該使我們能夠在未來積極追求數位轉型。我們將繼續優先考慮資源優化和永續性，加強我們的（技術難度）

One moment. It looks like we lost the speaker line again. We have the speaker line reconnected.

一會兒。看來我們又失去了揚聲器線。我們重新連接了揚聲器線。

The cash balance at the end of the quarter was INR 3,240 million. I will now hand over to our Chairman for his closing remarks.

本季末現金餘額為 32.4 億印度盧比。現在請主席致閉幕詞。

Thank you, Vijay. At the beginning of this financial year, we enabled our ambition to become the digital bid for enterprises who are either adopting or being (technical difficulty)

謝謝你，維傑。在本財年伊始，我們實現了成為正在採用或正在採用（技術難度）的企業的數位投標的雄心壯志。

It looks like we lost the speaker line again. Just one moment. We have the speaker line reconnected.

看來我們又失去了揚聲器線。只是一個瞬間。我們重新連接了揚聲器線。

Our immediate milestone is to become the enabler of the choice of this transformation. And we are well on our way. Thank you for joining on this call. I will now hand over to the operator. So I know we are having a lot of corrections. please reach our IR person for any questions. But I'm more than happy to connect -- answer any questions we have at this point. Operator?

我們目前的里程碑是成為此轉型選擇的推動者。我們一切順利。感謝您參加本次通話。我現在將其交給接線員。所以我知道我們正在進行很多修正。如有任何問題，請聯絡我們的 IR 人員。但我非常樂意與您聯繫—回答我們目前提出的任何問題。操作員？

(Operator Instructions) Your first question for today is coming from Greg Burns at Sidoti & Company.

（操作員說明）今天您的第一個問題來自 Sidoti & Company 的 Greg Burns。

So in terms of co-tax investment, what is their total investment now, including the first round of investment that they did, I guess, little over a year ago. I'm assuming that's fully pulled now, but where do they stand in terms of their investment into Sify Infinit Spaces? And the conversion rates on the notes, how much -- what percent of equity does that convert into.

那麼就共同稅務投資而言，他們現在的總投資是多少，包括他們一年多前所做的第一輪投資。我假設現在已經完全取消了，但他們對 Sify Infinit Spaces 的投資處於什麼位置？以及票據上的轉換率，轉換成多少百分比的股權。

(technical difficulty)

（技術難度）

Holly, do you have M.P Vijay for us.

霍莉，你有 M.P Vijay 來找我們嗎？

It look's like the speaker line has dropped again. Just one moment.

看來揚聲器線又斷線了。只是一個瞬間。

Holly. That's okay. My suggestion is that my CEO, Mr. Kamal Nath, can take this call. Kamal.

冬青。沒關係。我的建議是我的執行長 Kamal Nath 先生可以接聽這個電話。卡邁勒。

Praveen. Vijay has to take this call. So he'll be...

普拉文。維傑必須接這通電話。所以他會...

Okay. I can ask another -- I have another question. So maybe it's better for us all, but -- okay. Yes. So you mentioned like a new kind of phase of growth and taking advantage of moving beyond just kind of infrastructure and emphasizing digital services. So when you talk about that, is that just putting more resources behind the digital services that you're already reporting? Or does that envision something beyond that, some new services that you're bringing to market? Because I saw on your website, you had something called Marketplace. And I don't know if that's new and part of this initiative, but maybe if you could elaborate on your -- what you mean by digital services and your vision there for how that drives growth for Sify?

好的。我可以問另一個——我還有一個問題。所以也許這對我們所有人都更好，但是——好吧。是的。因此，您提到了一種新的成長階段，並利用超越基礎設施並強調數位服務的優勢。那麼，當您談論這一點時，是否只是在您已經報告的數位服務背後投入更多資源？或者這是否設想了除此之外的其他東西，即您要向市場推出的一些新服務？因為我在你們的網站上看到，你們有一個叫做「市場」的東西。我不知道這是否是新的，也是該計劃的一部分，但也許您可以詳細說明您所說的數位服務是什麼意思，以及您對如何推動 Sify 成長的願景？

Yes, very good. So yes, it's a good question. So we have -- so our entire portfolio can be logically divided it into -- can be looked at from a customer's point of view in 3 parts. One, of course, are the infrastructures for digital IT, cutting across data center network, cloud, et cetera, et cetera. The second set of services we are calling them digitalized services, which are basically services to better manage the digital infrastructure to get the best out of the digital infrastructure when the digital applications are being run on the infrastructure. so those are the digitalized services. And some of the digitalized services -- some of these services were basically were existing earlier also, but they have got digitalized by insertion of digital technologies like AMS-IX So a lot of our (inaudible) services have got digitalized by enabling them with AMS technologies. The third set of services, which we call the core digital services, (inaudible) of digital platforms. So we have invested, as we gave in our quarterly calls in multiple deep tech companies new [engineered adopted] companies, which are by using those platforms, we offer digital services to our customers. So customers can build digital business models or can digitalize their services based on those platforms.

是的，很好。所以是的，這是一個好問題。因此，我們的整個產品組合可以在邏輯上分為三個部分，可以從客戶的角度來看。當然，其中之一是數位 IT 基礎設施，涵蓋資料中心網路、雲端等。我們將第二組服務稱為數位化服務，這些服務基本上是更好地管理數位基礎設施的服務，以便當數位應用程式在基礎設施上運行時充分利用數位基礎設施。這些就是數位化服務。一些數位化服務——其中一些服務基本上也很早就存在了，但它們已經透過插入AMS-IX 等數位技術而實現了數位化。所以我們的許多（聽不清楚）服務已經透過AMS 啟用而實現了數位化技術。第三組服務，我們稱之為核心數位服務，（聽不清楚）數位平台。因此，正如我們在季度電話會議中對多家深度科技公司進行投資一樣，我們投資了新的[設計採用的]公司，這些公司透過使用這些平台，為我們的客戶提供數位服務。因此，客戶可以基於這些平台建立數位業務模型或將其服務數位化。

So we will be continually adding more and more portfolio around those core digital platforms. And in the coming days, I'm sure we'll be able to announce some more exciting partnerships in that regard. So from a customer standpoint, we are engaging with the customers for their core infrastructure. We are engaging with them for managing the core infrastructure better and also in the customer's innovation journey. So that's how I would like to put. And in that way, we are able to engage with customers cutting across their entire life cycle of their digital journey.

因此，我們將圍繞這些核心數位平台不斷添加越來越多的產品組合。在接下來的幾天裡，我相信我們將能夠在這方面宣布一些更令人興奮的合作關係。因此，從客戶的角度來看，我們正在與客戶合作開發他們的核心基礎設施。我們正在與他們合作，以便更好地管理核心基礎設施以及客戶的創新之旅。這就是我想說的話。透過這種方式，我們能夠與跨越數位化旅程整個生命週期的客戶互動。

Okay. Great. And I don't know if this is -- one for Vijay or not. But can you just give us an update on your data center footprint, I think the last report was around 11 DCs and about 100 megawatts of power. What's the road map like for this year? How much capacity in fiscal '24? Are you bringing online? And what's the timing of that?

好的。偉大的。我不知道這是否是給維傑的。但您能否向我們介紹一下您的資料中心佔地面積的最新情況，我認為上一份報告大約有 11 個 DC 和大約 100 兆瓦的電力。今年的路線圖是怎麼樣的呢？ 24 財年的產能有多少？你帶上網嗎？那是什麼時間呢？

Yes, we are in fact -- Vijay you there.

是的，我們確實是－Vijay，你在那裡。

Yes. (inaudible) here. Yes. So we have 3 greenfield projects which are currently under construction. One of them is expected to go live later this quarter. And that particular capacity is designed for about 38 megawatts and will get occupied by the customer in a phased manner. The other 2 facilities, the civil construction will get completed in the quarter 4 of the fiscal year. And the basis, our customer engagements will create the initial IT capacity required for the customers.

是的。 （聽不清楚）在這裡。是的。我們有 3 個綠地工程目前正在興建中。其中一個預計將於本季晚些時候上線。此特定容量設計約為 38 兆瓦，並將分階段由客戶佔用。另外 2 個設施的土木工程將於本財年第四季完成。在此基礎上，我們的客戶參與將創造客戶所需的初始 IT 能力。

Okay. So between those 3, how much -- I guess you mentioned 38 megawatts and the one that's coming online. But how much added capacity is that put you at? And then, I guess, could you just remind us of what your longer-term targets are in terms of your data center investments? And does the new investment from Kotak increased that year outlook -- increase your goals in terms of investment in capacity? .

好的。那麼，在這 3 個功率之間，有多少——我猜你提到了 38 兆瓦和即將上線的功率。但這會為您帶來多少額外容量呢？然後，我想，您能否提醒我們一下您在資料中心投資方面的長期目標是什麼？ Kotak 的新投資是否提高了當年的前景—提高了您在產能投資方面的目標？ 。

I lost a part of your question because I got disconnected. I guess you are referring to additional capacities to be created in the future based on the new capital, which is coming from Kotak.

因為我斷線了，所以我失去了你問題的一部分。我猜您指的是未來基於新資本（來自 Kotak）創建的額外產能。

Yes.

是的。

That is for new capacities, which we intend to create over the next 18 to 24 months beyond the 3 greenfield projects which are currently under construction. The new capacities, we are currently completed our land acquisition. The design and planning work is in (technical difficulty)

這是針對新產能的，我們打算在未來 18 至 24 個月內，在目前正在建造的 3 個綠地專案之外創建新產能。新產能方面，我們目前已完成土地徵用。設計規劃工作處於（技術難度）

One moment while we connect the CEO.

我們正在聯繫首席執行官。

That's okay. I could -- we could connect off-line and do this at another time.

沒關係。我可以——我們可以離線連接並在其他時間進行此操作。

Okay. I'm back here. So it's basically for new capacities beyond the current greenfield project. What we have done is financial closure ahead of new projects to be started.

好的。我回來了。因此，這基本上是為了當前綠地計畫之外的新產能。我們所做的是在新專案啟動之前進行財務結算。

(Operator Instructions) There appear to be no further questions in queue. I would like to turn the call over to the management for closing remarks.

（操作員說明）隊列中似乎沒有其他問題。我想將電話轉交給管理階層進行總結發言。

Thanks for your time on this call. We look forward to interacting with you through the year. Thanks very much. Have a great day.

感謝您抽空接聽本次電話。我們期待這一年與您互動。非常感謝。祝你有美好的一天。

This concludes today's -- thank you. This concludes today's conference. You may disconnect your lines at this time.

今天的內容到此結束——謝謝。今天的會議到此結束。此時您可以斷開線路。

Holly, if you don't mind. To everybody on the call, we're sorry about the interruptions that have been frequently happening. But if you have any further questions, you can reach out to me marked in the press release. My e-mail ID and my coordinates are there. Thank you very much, Holly.

霍莉，如果你不介意的話。對於通話中的每個人，我們對頻繁發生的打擾表示歉意。但如果您還有任何其他問題，可以與新聞稿中標記的我聯繫。我的電子郵件 ID 和座標都在那裡。非常感謝你，霍莉。

Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束，此時您可以掛斷電話了。感謝您的參與。