Sify Technologies Limited Adr (SIFY)

Sify Technologies Limited ADR (SIFY) stock dropped by 11.14% due to the company's lower-than-expected third quarter sales, which disappointed investors. Here are the key details:

• Sales decline in Q3 Revenue: The company reported a 3% year-on-year decline in revenue, totaling INR 8.66 billion for the quarter. Revenue from Data Center services showed a positive trend, rising by 13% year-on-year, while Digital services witnessed a decline of 22% year-on-year, and Network services experienced a 4% year-on-year growth.
• EBITDA Improvement and Loss After Tax: Sify Technologies reported an EBITDA improvement of 4%, reaching INR 1.69 billion in the quarter. However, the company recorded a loss after tax of INR (14) million, a stark contrast to the INR 258 million profit in the same quarter of the previous year. This loss was attributed to higher depreciation and interest costs.
• Operational Metrics and Cash Balance: As of December 31, 2023, Sify expanded its services through 974 fiber nodes nationwide, representing a 15% year-on-year growth. Additionally, the company deployed 6,920 contracted SDWAN service points across the country. Sify Technologies ended the quarter with a cash balance of INR 6.04 billion. The significant decline in Sify Technologies' stock price reflects market reaction to the third-quarter sales report, which indicated revenue decline and a shift in profitability.