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Sify Technologies Limited (SIFY)
NASDAQ:SIFY
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Sify Technologies
(NASDAQ:SIFY)
Rating:65Neutral
Price Target:―
Sify Technologies (SIFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$366.89M
Dividend YieldN/A
Average Volume (3M)52.58K
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth9.62%
EPS GrowthN/A
CountryUS
Employees4,319
SectorCommunication Services
Sector Strength91
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding72,221,900
10 Day Avg. Volume50,507
30 Day Avg. Volume52,577
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.56
Price to Sales (P/S)0.00
P/FCF Ratio158.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Sify Technologies Business Overview & Revenue Model
Company DescriptionSify Technologies Limited provides integrated ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The Network Centric Services segment offers internet, internet protocol and multi-protocol label switching virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, managed services, dedicated internet access, and proactive monitoring and management of the network and devices. The Data Center Services segment provides co-location services; and managed data center services, such as storage and back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. The Digital Services segment offers managed network services; EDGE services; cloud and managed services including cloud and storage solutions, managed services, value added services, domestic and international managed services; and technology integration services include system integration, data centers build, network, security solutions, remote and onsite infrastructure management, managed security services, as well as sale of hardware and software. This segment also offers applications integration services, such as talent management, supply chain management, online assessment, web development, document management, content, digital signature, digital certificate-based authentication, supply chain solutions, content management, sale of digital certificates; and sale, implementation, and maintenance of industry specific applications; supply chain software, and eLearning software development services; and operates web portals. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was incorporated in 1995 and is headquartered in Chennai, India.
How the Company Makes MoneySify Technologies generates revenue through multiple streams that leverage its comprehensive IT service offerings. The primary revenue sources include network services, where Sify provides managed network and security services to businesses; data center services, offering colocation, hosting, and storage solutions; and cloud and managed services, which involve cloud infrastructure and platform services. Additionally, Sify earns from digital services like application modernization, IoT, and analytics, as well as technology integration services, which encompass system integration and IT consulting. The company's earnings are bolstered by strategic partnerships with global technology firms and a robust customer base seeking reliable digital transformation solutions.
Sify Technologies Earnings Call Summary
Earnings Call Date:Apr 18, 2025
(Q4-2025)
| % Change Since: 55.97%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The call highlighted strong revenue and EBITDA growth, as well as significant expansion in data center capacities. However, these positive aspects were offset by substantial capital expenditures and losses before and after tax, indicating financial challenges.Q4-2025 Updates
Positive Updates
Revenue Growth
The revenue for the year was INR 39,886 million, marking an increase of 12% over last year.
EBITDA Increase
EBITDA for the year was INR 7,562 million, which is a 12% increase over the previous year.
Expansion of Fiber Nodes
Sify provides services via 1,137 fiber nodes across the country, reflecting a 10% increase over the previous year.
Data Center Capacity Expansion
Two new data center facilities went live, each with a design capacity of 26 megawatts, and additional capacity is under construction in Mumbai.
Negative Updates
Loss Before and After Tax
Loss before tax was INR 286 million and loss after tax was INR 785 million.
Substantial Capital Expenditure
Capital expenditure for the year was INR 12,745 million, which is significant and expected to be marginally higher in fiscal '26.
Increased Operational Expenses
Substantial expenses were incurred for new capacities leased for future business requirements, impacting the financials.
Company Guidance
In the call discussing Sify Technologies' financial results for the fiscal year 2024-2025, several key metrics and guidance were provided. The revenue for the year was reported at INR 39,886 million, marking a 12% increase over the previous year. EBITDA also rose by 12%, reaching INR 7,562 million. Despite these increases, the company reported a loss before tax of INR 286 million and a loss after tax of INR 785 million. The capital expenditure for the year was substantial at INR 12,745 million, indicating significant investment in infrastructure development. The revenue was divided among three main service areas: data center services (38%), network services (41%), and digital services (21%). The call highlighted that Sify is strategically focused on enhancing operational agility and capturing emerging opportunities, with a reported cash balance of INR 6,836 million at the end of the year. The company also expanded its network infrastructure to 1,137 fiber nodes and deployed 1,870 SDWAN service points, reflecting a 10% increase in fiber nodes over the previous year.Sify Technologies Financial Statement Overview
Summary
Sify Technologies shows strong revenue growth but faces challenges with declining profit margins and profitability metrics. The balance sheet indicates stable leverage, though asset utilization could improve. Cash flow analysis reveals solid operational cash generation, but negative free cash flow suggests the need for better capital management.Income Statement
Sify Technologies has shown a consistent increase in total revenue over the years, with a robust revenue growth rate of 6.66% from 2023 to 2024. However, net profit margins have been under pressure, declining to 0.14% in 2024 from 2.02% in 2023. The gross profit margin is healthy at 37.2%, but the decline in both EBIT and EBITDA margins from previous years indicates rising costs or operational inefficiencies.65
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio of 1.15, indicating a balanced leverage. However, the equity ratio has seen a slight decrease to 33.85% in 2024. Return on equity has significantly dropped to 0.20%, suggesting reduced profitability relative to equity. The financial position appears stable but could benefit from improved efficiency in asset utilization.70
Positive
Cash Flow
Sify Technologies exhibits a concerning trend in cash flow, with a negative free cash flow in 2024. The operating cash flow to net income ratio is strong at 101.82, indicating good cash generation capability. However, the free cash flow growth rate is negative, signaling potential issues in managing capital expenditures effectively.55
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 36.51B | 35.63B | 33.40B | 27.03B | 24.32B | 22.95B | Gross Profit |
| 13.54B | 13.26B | 12.03B | 10.98B | 9.62B | 8.59B | EBIT |
| 2.00B | 2.17B | 2.45B | 2.87B | 2.39B | 1.88B | EBITDA |
| 6.00B | 5.75B | 6.50B | 6.18B | 5.22B | 4.25B | Net Income Common Stockholders |
| -66.00M | 48.94M | 674.52M | 1.26B | 1.53B | 705.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.39B | 5.39B | 3.65B | 3.78B | 5.10B | 2.32B | Total Assets |
| 70.98B | 70.98B | 57.40B | 47.07B | 36.66B | 34.26B | Total Debt |
| 27.59B | 27.59B | 22.93B | 17.46B | 11.74B | 11.16B | Net Debt |
| 23.48B | 23.48B | 19.28B | 13.68B | 6.63B | 8.85B | Total Liabilities |
| 46.95B | 46.95B | 40.26B | 32.59B | 23.50B | 22.90B | Stockholders Equity |
| 24.03B | 24.03B | 17.15B | 14.48B | 13.17B | 11.35B |
| Cash Flow | Free Cash Flow | ||||
| 57.76M | -7.39B | -4.87B | -5.13B | 3.21B | 541.25M | Operating Cash Flow |
| 57.76M | 4.98B | 8.34B | 2.24B | 6.97B | 5.04B | Investing Cash Flow |
| 0.00 | -12.26B | -13.59B | -7.59B | -3.62B | -4.33B | Financing Cash Flow |
| 0.00 | 7.44B | 4.94B | 4.17B | 618.37M | 3.92M |
Sify Technologies Technical Analysis
Positive
4.96
Price Trends
4.52
Positive
4.31
Positive
3.62
Positive
Market Momentum
0.18
Positive
54.28
Neutral
37.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIFY, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.88, above the 50-day MA of 4.52, and above the 200-day MA of 3.62, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 37.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIFY.
Sify Technologies Risk Analysis
Sify Technologies disclosed 78 risk factors in its most recent earnings report. Sify Technologies reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sify Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $212.07M | 24.91 | 9.35% | ― | 18.23% | 81.31% | |
65 Neutral | $366.89M | ― | 0.20% | ― | 9.62% | ― | |
65 Neutral | $363.25M | ― | -5.81% | ― | 7.01% | -84.41% | |
61 Neutral | $14.37B | 5.86 | -4.31% | 3.69% | 2.75% | -35.55% | |
57 Neutral | $725.76M | ― | -4.30% | 0.76% | 21.68% | -1010.29% | |
52 Neutral | $239.96M | ― | -5.79% | 6.09% | -5.46% | -76.33% | |
42 Neutral | $501.66M | ― | -18.92% | ― | 66.77% | -293.79% |
* Communication Services Sector Average
Performance Comparison
SIFY
Sify Technologies
4.96
1.44
40.91%
ATNI
ATN International
15.92
-4.97
-23.79%
RDCM
Radcom
13.15
3.91
42.32%
SHEN
Shenandoah Telecommunications Co
13.50
-2.66
-16.46%
ATEX
Anterix
27.84
-4.33
-13.46%
OOMA
Ooma
13.24
4.65
54.13%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.