Sify Technologies Limited (NASDAQ:SIFY) Q3 2023 Earnings Call Transcript

M. P. Vijay Kumar: Yes. In INR — in rupee terms, we have so far drawn INR 4000 million. And we have option to draw a further INR 6000 million — INR 6,000 million.

Greg Burns: Okay. Perfect. And in terms of your data center capacity, how much incremental megawatts of capacity do you expect to come online this year?

M. P. Vijay Kumar: In the fiscal year ending March ’23, the incremental capacity will be small, but there are 3 greenfield projects which are presently under construction at 3 major cities: Mumbai, Delhi, which is Noida and Chennai. All the 3 are expected to become operational end of calendar year ’23. And they’re all designed for an initial capacity of about 78 megawatts, but we will start delivering it in stages to our customers.

Greg Burns: Okay. So — okay. Perfect. So those will start coming online throughout the calendar year or…

M. P. Vijay Kumar: Yes. It’s actually later part of the calendar year.

Greg Burns: Okay, perfect. Okay. And the start-up investments you’re making in Silicon Valley, is that to acquire technology? Or is that purely just a financial investment you’re making there?

M. P. Vijay Kumar: These are basically to access technology, which we can take it to our enterprise customers in India, in their journey for digital transformation.

Greg Burns: Okay. All right. And then just lastly, the revenue — the data center revenue, the growth was a little bit lower than I was expecting and it was actually down a little bit, I think, sequentially. So what drives that. I would think of that business more as just kind of a secular steady growth but maybe there’s other things driving some fluctuation quarter-to-quarter there.

M. P. Vijay Kumar: There’s actually no fluctuation. As you rightly observed, it is a steady revenue. The last quarter, we had some onetime capacity delivery revenue, which accrued to us. The recurring revenue continues to be stable. And the recurring revenue will start seeing a growth as in when new capacity gets operationalized.

Greg Burns: Okay. Perfect. All right. That’s everything for me.

M. P. Vijay Kumar: Thank you.

Operator: . Okay. We don’t appear to have any other questions, so I will now hand back over to the management for any closing remarks.

M. P. Vijay Kumar: Thank you for your time on this call. We look forward to interacting with you through the year. Thank you.

Operator: Thank you, everybody. This concludes today’s conference. You may disconnect your lines at this time, and have a wonderful day. Thank you for your participation.