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spk01: Good morning everyone and welcome to the SIFI Technologies financial results for the first quarter fiscal year 2024 to 2025. At this time all participants are in a listen only mode and we will open for questions following the presentation. If anyone should require operator assistance during this conference please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host Praveen Krishna of SIFI Technologies. Praveen, over to you.
spk03: Thank you, Jenny. I would like to extend a warm welcome to all our participants on behalf of SIFI Technologies Limited. I'm joined on the call today by Raju Veksanath, Chairman, MP Vijay Kumar, Executive Director and Group CFO, and Kamal Nath, Chief Executive Officer of SIFI Technologies Limited. 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 Weber Shanwick at 212-546-8260 and we'll have one sent over to you. Alternatively, you may obtain a copy of the release of the investor information section on the company's corporate website at www.sifitechnologies.com. A replay of today's calls may be accessed by dialing in on the numbers provided in the press release. or the webcast in the investor information section. Some of the financial measures referred to during this call and in the earnings release may include non-GAAP measures. The results for the year are according to the IFRS and will differ somewhat from the GAAP announcements that were made in the 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 CIFI's website. Before we continue, I'd like to point out that certain statements contained in the earnings released 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 public 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 a complete list of all risks and uncertainties inherent to the company's business. I would now like to introduce Mr. Raju Veksanam, Chairman of SIFI Technologies Limited. Chairman.
spk06: Thank you, Praveen. Good morning, everyone. Thank you for joining us on the call. India is currently in a remarkable phase of growth. The combination of pro-industry regulations, a supportive investment environment, and a wealth of skilled talent positions our nation as a key destination for international businesses. This confidence is driving investments and building partnerships that benefit both enterprises and the broader economy. The advancement in regularity and taxation norms should help accelerate investment in the network and data center landscape and enhance India's status as a pivotal interconnect hub between Asia and the Middle East. Our robust infrastructure and comprehensive services portfolio uniquely position CP to seize these opportunities. as enterprises and government entities advance their digital transformation and automation initiatives cp stands ready to support them with our innovative digital tools and services now i would like our ceo come along take from here come on and the business yeah come on yeah thank you raju
spk05: Thank you, Raju. As businesses embark on digital transformation, they are reconfirming their IT frameworks to incorporate multiple transformative solutions. All of them with a common agenda of enhancing end-user satisfaction, ensuring operational resilience, and protecting digital assets. Our significant capital allocations and extensive range of offerings are designed to effectively meet these ambitions. Our capability to provide innovative outcomes to our triad of infrastructure and managed services uniquely positions us to support them throughout their digital transformation journey. Let me now expand on the business highlights for the quarter. The revenue split between the businesses for the quarter was data center co-location services at 36%, digital services at 23%, and network services at 41%. During the quarter, SIFI commissioned 6.5 megawatt capacity in Mumbai. As of June 30th, 2024, SIFI provides services through 1,055 fiber nodes across the country, a 16% increase over the same quarter last year. The network connectivity service has now deployed 9,415 SD-WAN service points across the country. A detailed list of our key wins is recorded in our press release, now live on our website. Let me bring in Vijay, our Executive Director and Group CFO, to elaborate on the financial highlights for the quarter. Vijay?
spk04: Thank you, Kamal.
spk02: Good morning, everyone. The International Accounting Standard Boards recently issued Accounting Standard IFRS 18 presentation and disclosure in financial statements, replacing IAS 1, presentation of financial statements. The new structure of profit and loss statement requires classification of income and expense into three categories, operating, investing, and financing, and presentation of subtotals for operating profit or loss, and profit or loss before financing and income tax. Although the International Accounting Standard Board set an effective date as January 1, 2027, encouraging early adoption, our company will begin adhering to IFRS 80, beginning with its consolidated financial statements for the quarter ended June 30, 2024. All prior periods presented in the press release, which are currently live, have been presented in accordance with the new structure. There is no change in the total income or net profit. Let me briefly sum up the financial performance for quarter one of financial year 2024-25. Revenue was INR 9421 million. an increase of 10% over the same quarter last year. EBITDA was INR 1784 million, an increase of 3% over the same quarter last year. Loss before tax was INR 46 million and loss after tax was INR 105 million. Capital expenditure during the quarter was INR 2656 million. We will continue to invest in expanding our network, both fiber in the metros and terrestrial long distance, data center capacity, and also strengthen our digital services team by adding people with right skill sets and investing more in our learning and development initiatives. Fiscal discipline will continue to remain central to our focus and strategy. The cash balance at the end of the quarter was INR 6471 million. I will now hand over to the chairman for his closing remarks. Chairman.
spk06: Thank you, Vijay. In October this year, we will become the only Indian company to be continuously listed on the NASDAQ for 25 years. We have continuously invested in, improved, and broadened our scope of services, and today enjoy the unique reputation of being the only converged ICT player in India. From retail to enterprise play, from infrastructure services provided to value partner. The journey has been very satisfying. CPI's new version as a digital transformation partner puts us in partnership with the clients going forward. I assure you, this is only the beginning. Thank you for joining us on this call. I will now hand over to the operators for questions. Operator?
spk01: Thank you very much. We will now be conducting our question and answer session. If you would like to ask a question, please press star 1 on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press star 2 if you would like to remove your question from the queue. For anyone using speaker equipment, it might be necessary to pick up your handset before you press the keys. Please pause a moment whilst we poll for questions. Thank you. Your first question is coming from Greg Burns of Sidoti and Company. Greg, your line is live.
spk00: Good morning. What are the primary drivers of data center demand within India? Are you seeing more demand from hyperscalers, and are you seeing any benefit from artificial intelligence yet? Thank you.
spk06: Let me answer that way. So most of the demand is coming from hyperscalers and, as usual, the enterprises. The AI, artificial intelligence, in India is not taken off. But there are a lot of discussions that are going, and we see those are the things upcoming. future uh you know there is a lot of hopes are coming but what is you see in the demand currently is still hyperscalers and our regular enterprise businesses you know long way industry long way to go to move people from server rooms to the co-locations you know yep okay um
spk00: And you mentioned, I guess you commissioned 6.5 megawatts in the quarter. Could you just give us an update on the roadmap for the year in terms of new data center capacity?
spk06: I don't think I can give a roadmap of the future. But, you know, we build enough capacities that are available. And, you know, our Mumbai data centers Noida data centers, Chennai data centers, Hyderabad data centers. We have a good pipeline. We are building up. And until, you know, future, you know, I cannot give you any numbers at this point. We are seeing a good trend of opportunities coming, you know.
spk00: Okay. And then what is the outlook for for CapEx for the full year and with the rights offering completed, do you have enough liquidity to fund your capital needs for the remainder of the year?
spk02: Yeah, so Greg, two points which you mentioned. One is as far as the capital expenditure outlook is concerned, the quarter one we just went by, We spent about 2645 million which I mentioned and the same trend of capex will continue for the foreseeable future. As far as the rights issue is concerned, it was successful, the capital raise has been done and this capital also enhances our leveraging ability from the banking system together They will help us meet the funding requirements of expansion of both data center as well as the network infrastructure.
spk00: Okay. And lastly, digital services declined in the quarter. Can you just maybe give us a little bit more color on what was driving the decline in that segment this quarter? Sure.
spk02: As far as the digital services business is concerned, we are moving from project-based to annuity-based revenue model. And we are building skill sets. We started this initiative about two years back. And we'll continue for the next couple of years to build an adequate capacity to meet the India enterprise digitalization requirements. we continue to add people and put them through a training process so that we will have adequate skill sets, which will be relevant for supporting the digitalization initiatives of India Enterprise.
spk00: Okay. And then I'll add one other one. The growth in the data center segment kind of accelerated a little bit this quarter. Was there anything one time in the quarter, or is that a good number to build our models off of?
spk02: Yeah, there is no one time in this. It is recurring.
spk00: Okay, perfect. All right, thank you very much.
spk02: Yeah, thank you.
spk01: Thank you very much. And just a reminder, if there will be any further questions, you can press star 1 on your phone keypad now. Okay, I'm not seeing any other questions come into the queue. I can now hand back over to the management team for any closing remarks.
spk06: Thank you. Thank you for your time on this call. We look forward to interacting with you through the year. Have a great day. Thank you. Thank you, Jenny.
spk01: Thank you very much. Thank you. This does conclude today's conference.
spk00: Thank you.
spk01: You may now disconnect your phone lines and have a wonderful day. Thank you for your participation.
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