Latest news with #CapitalExpenditure
Yahoo
a day ago
- Business
- Yahoo
Sify Technologies Ltd (SIFY) Q1 2026 Earnings Call Highlights: Revenue Growth Amidst Financial ...
Revenue: INR10,723 million, an increase of 14% over the same quarter last year. EBITDA: INR2,111 million, an increase of 18% over the same quarter last year. Loss Before Tax: INR322 million. Loss After Tax: INR388 million. Capital Expenditure: INR2,874 million. Network Services Revenue Share: 41% of total revenue. Data Center Colocation Services Revenue Share: 37% of total revenue. Digital IT Services Revenue Share: 22% of total revenue. Data Center Capacity Commissioned: 8.6 megawatts additional capacity. SD-WAN Service Points: 9,473 contracted service points deployed. Warning! GuruFocus has detected 7 Warning Signs with SIFY. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Sify Technologies Ltd (NASDAQ:SIFY) reported a 14% increase in revenue for the quarter, reaching INR10,723 million compared to the same quarter last year. EBITDA increased by 18% year-over-year, totaling INR2,111 million, indicating strong operational performance. The company commissioned 8.6 megawatts of additional data center capacity, enhancing its infrastructure capabilities. Sify Technologies Ltd (NASDAQ:SIFY) is strategically focusing on long-term value creation through disciplined investment and risk management. The company is capitalizing on India's digital transformation, with significant investments in cloud adoption, AI, and digital infrastructure. Negative Points Sify Technologies Ltd (NASDAQ:SIFY) reported a loss before tax of INR322 million and a loss after tax of INR388 million, reflecting financial challenges. Increased depreciation, interest costs, and manpower expenses impacted the company's profitability. The digital IT services segment experienced flat revenue growth and increased operational losses, indicating challenges in this business area. The company's EBITDA margin remains around 20%, with no immediate expansion expected despite the growth in data center operations. The transition to annuity-based revenue in the digital services segment has resulted in slower revenue growth compared to project-based revenues. Q & A Highlights Q: Can you remind us how much data center capacity has been commissioned and what are your expectations for the next 12 months? A: M. P. Vijay Kumar, CFO, stated that two greenfield data center projects in Delhi and Chennai have gone live, each with a design capacity of 26 megawatts. The total operational capacity now stands at 138 megawatts. Two additional data centers in Mumbai, each with a design capacity of 52 megawatts, are under construction and expected to go live later this financial year. Q: Can you explain the pay-per-use colocation AI model and the expected returns? A: Raju Vegesna, CEO, explained that Sify offers a pay-per-use colocation model for GPUs, certified by NVIDIA, at their data centers in Mumbai, Chennai, and Noida. Customers can bring their own GPUs and use Sify's facilities on a per-use basis. This model is unique and has garnered global interest, although specific numbers are not yet available. Q: When might we see more leverage in the business model given the current investments? A: M. P. Vijay Kumar, CFO, indicated that while the network and data center businesses are performing well, the digital IT services segment is still in an investment phase. He expects to see results from these investments in 12 to 18 months, leading to improved leverage. Q: What are the plans for the digital services business given its flat top line and increased losses? A: M. P. Vijay Kumar, CFO, explained that the digital services business is transitioning from project-based to annuity-based revenues, which results in smaller but more consistent income streams. The focus is on building capabilities, with an expected turnaround in 12 to 18 months. Q: Why are EBITDA margins not expanding despite the growth in data centers? A: M. P. Vijay Kumar, CFO, noted that the data center business has high EBITDA margins of about 45%, while the network business is at 18%. The IT services segment is still developing. The company aims for gradual improvement in consolidated margins as the IT services business gains traction. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
a day ago
- Business
- Yahoo
Sify Technologies Ltd (SIFY) Q1 2026 Earnings Call Highlights: Revenue Growth Amidst Financial ...
Revenue: INR10,723 million, an increase of 14% over the same quarter last year. EBITDA: INR2,111 million, an increase of 18% over the same quarter last year. Loss Before Tax: INR322 million. Loss After Tax: INR388 million. Capital Expenditure: INR2,874 million. Network Services Revenue Share: 41% of total revenue. Data Center Colocation Services Revenue Share: 37% of total revenue. Digital IT Services Revenue Share: 22% of total revenue. Data Center Capacity Commissioned: 8.6 megawatts additional capacity. SD-WAN Service Points: 9,473 contracted service points deployed. Warning! GuruFocus has detected 7 Warning Signs with SIFY. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Sify Technologies Ltd (NASDAQ:SIFY) reported a 14% increase in revenue for the quarter, reaching INR10,723 million compared to the same quarter last year. EBITDA increased by 18% year-over-year, totaling INR2,111 million, indicating strong operational performance. The company commissioned 8.6 megawatts of additional data center capacity, enhancing its infrastructure capabilities. Sify Technologies Ltd (NASDAQ:SIFY) is strategically focusing on long-term value creation through disciplined investment and risk management. The company is capitalizing on India's digital transformation, with significant investments in cloud adoption, AI, and digital infrastructure. Negative Points Sify Technologies Ltd (NASDAQ:SIFY) reported a loss before tax of INR322 million and a loss after tax of INR388 million, reflecting financial challenges. Increased depreciation, interest costs, and manpower expenses impacted the company's profitability. The digital IT services segment experienced flat revenue growth and increased operational losses, indicating challenges in this business area. The company's EBITDA margin remains around 20%, with no immediate expansion expected despite the growth in data center operations. The transition to annuity-based revenue in the digital services segment has resulted in slower revenue growth compared to project-based revenues. Q & A Highlights Q: Can you remind us how much data center capacity has been commissioned and what are your expectations for the next 12 months? A: M. P. Vijay Kumar, CFO, stated that two greenfield data center projects in Delhi and Chennai have gone live, each with a design capacity of 26 megawatts. The total operational capacity now stands at 138 megawatts. Two additional data centers in Mumbai, each with a design capacity of 52 megawatts, are under construction and expected to go live later this financial year. Q: Can you explain the pay-per-use colocation AI model and the expected returns? A: Raju Vegesna, CEO, explained that Sify offers a pay-per-use colocation model for GPUs, certified by NVIDIA, at their data centers in Mumbai, Chennai, and Noida. Customers can bring their own GPUs and use Sify's facilities on a per-use basis. This model is unique and has garnered global interest, although specific numbers are not yet available. Q: When might we see more leverage in the business model given the current investments? A: M. P. Vijay Kumar, CFO, indicated that while the network and data center businesses are performing well, the digital IT services segment is still in an investment phase. He expects to see results from these investments in 12 to 18 months, leading to improved leverage. Q: What are the plans for the digital services business given its flat top line and increased losses? A: M. P. Vijay Kumar, CFO, explained that the digital services business is transitioning from project-based to annuity-based revenues, which results in smaller but more consistent income streams. The focus is on building capabilities, with an expected turnaround in 12 to 18 months. Q: Why are EBITDA margins not expanding despite the growth in data centers? A: M. P. Vijay Kumar, CFO, noted that the data center business has high EBITDA margins of about 45%, while the network business is at 18%. The IT services segment is still developing. The company aims for gradual improvement in consolidated margins as the IT services business gains traction. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
4 days ago
- Business
- Forbes
Investment Made By U.S. Small Businesses
Education and training are important investments in workers (human capital). However, workers must be paired with physical capital (from shovels to AI computers) to produce the goods and services that consumers want. Small business owners act as 'intermediaries,' bringing capital and labor together in a working partnership. NFIB's June Small Business Economic Trends report found that 50% of small business owners reported making a capital expenditure in the past six months. These included vehicles, equipment, fixtures and furniture, buildings or land, along with improvements to existing buildings or land. Historically, June's level is low, close to the 50-year low of 45% reached after the 2008 recession (Chart 1). The peak of 72% occurred in December 1998, as spending surged in anticipation of the 'Y2K' event, which turned out to be a 'non-event." Actual Capital Outlays. NFIB Small Business Economic Trends. Chart 2 shows the types of expenditures made in June. Thirty-two percent reported purchasing vehicles, ranging from a low of 13% among wholesale businesses to a high of 45% among finance and real estate businesses. Nine percent purchased new equipment, 3% upgraded structures, and 13% acquired new facilities (purchased or leased). Equipment purchases were concentrated in the service and retail industries. Types of Investment by Industry (Bought or Leased). NIFB Small Business Economic Trends. The most frequent spenders were transportation and communication businesses (Chart 3). They also had the highest spending, with 29% reporting outlays of $100,000 or more. Trucks and construction vehicles are expensive! Businesses in the retail, services, and professional services industries were the least active buyers and tended to spend less money when they invested. In general, businesses that 'made stuff' were much more likely to invest and spend more money than service businesses (labor-intensive). Capital Expenditure Amount by Industry. NFIB Small Business Economic Trends. A critical component of gross private domestic investment is the 'change in business inventories.' In simple terms, if General Motors makes a car in the U.S. and sells it, GDP is created as consumption rises. If the car is unsold at the end of the accounting period (year, quarter, or month), then it becomes an inventory investment. When the car is sold in another period, it is a subtraction from GDP because it was already accounted for in GDP through increased inventory investment. Basically, it is an accounting convention, unrelated to real investment spending, but a contributor to volatility in GDP measurement. It is small compared to outlays on plant and equipment and housing. Actual Change in Inventory. NFIB Small Business Economic Trends. Progress is the product of a partnership between capital and labor, the essence of all businesses, big and small. Owners provide the structure and equipment and hire workers to complete the partnership. Good management and qualified workers enhance productivity, the fundamental driver of profits and wages. It's a never-ending process, as the environment is constantly changing. Main Street is where it all starts. Microsoft (et al) didn't just suddenly appear; they were all small businesses on Main Street.
Yahoo
10-07-2025
- Business
- Yahoo
BOJ sees US tariff hit to exports limited for now, warns of gloom ahead
By Leika Kihara TOKYO (Reuters) -The impact of U.S. tariffs on Japan's exports and output was limited for now, but many companies worried about the risk of weaking global demand ahead, the central bank said on Thursday. While some areas in Japan saw companies delaying or reviewing capital expenditure plans, others said companies continued to increase spending to streamline operations and cope with labour shortages, according to a summary of the BOJ's quarterly meeting of regional branch managers. "At present, the impact was limited overall," the summary said on how higher U.S. tariffs were affecting exports and factory output in regional Japan. "As for the outlook, many regions saw companies voicing concern about slumping demand from rising U.S. sales prices and a slowdown in the global economy," the summary said. In a separate report, the BOJ maintained its assessment for all nine regions from three months ago to say their economies were recovering moderately. The summary and report will be among factors the BOJ will scrutinise at its next policy meeting on July 30-31, when the board will issue fresh quarterly growth and price forecasts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
10-07-2025
- Business
- CNA
BOJ sees US tariff hit to exports limited for now, warns of gloom ahead
TOKYO :The impact of U.S. tariffs on Japan's exports and output was limited for now, but many companies worried about the risk of weaking global demand ahead, the central bank said on Thursday. While some areas in Japan saw companies delaying or reviewing capital expenditure plans, others said companies continued to increase spending to streamline operations and cope with labour shortages, according to a summary of the BOJ's quarterly meeting of regional branch managers. "At present, the impact was limited overall," the summary said on how higher U.S. tariffs were affecting exports and factory output in regional Japan. "As for the outlook, many regions saw companies voicing concern about slumping demand from rising U.S. sales prices and a slowdown in the global economy," the summary said. In a separate report, the BOJ maintained its assessment for all nine regions from three months ago to say their economies were recovering moderately. The summary and report will be among factors the BOJ will scrutinise at its next policy meeting on July 30-31, when the board will issue fresh quarterly growth and price forecasts.
