Sify Ltd has turned the corner for the first time in a full financial year. The company has posted maiden net profit of $2.3 million for the year 2006-07 as against a net loss of $3.5 million in 2005-06. The Chennai-based internet access and portals company reported revenues of $128 million for the full financial year 2006-07, which is 17.9 per cent higher than the previous year. Actually, the net profits would been higher if not for the provision for doubtful debts (PDD). About $5.7 million was written off on this count.
The company had cash profit, in adjusted EBITDA terms, of $11.6 million, which grew 76 per cent from last year’s $6.7 million. The gross margin for the year, however, remained almost at the same level at 47.3 per cent against 45.9 per cent the previous year.
As for the fourth quarter ended March 31, 2007, the revenues stood at $33 million, 10.7 per cent higher than the same quarter the previous year. However, the company recorded a net loss $1.7 million in Q4 this year compared to a net profit of $0.6 million in the same quarter previous year. That’s because of the write-off of bad debt and also because of the rupee exchange loss of $0.4 million (Rupee appreciated against the Dollar).
Raju Vegesna, Chairman and CEO, Sify, said,
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