Sify Technologies, a managed network, IT and application services company, has reported a 81.5 per cent decline in net profit at Rs. 11.10 crore for second the quarter ended September 30.

The Chennai city-based company had registered net profit of Rs. 60.10 crore during the corresponding period of the previous year, Sify Technologies said in a statement.

Total revenues for the July-September, 2013 quarter stood at Rs. 250.50 crore against Rs. 205.90 crore registered during the corresponding period of previous year.

“In spite of a challenging external environment across most sectors in India, we are continuing to see good traction for our solutions offerings. While these tight fiscal conditions have resulted in some delays in customer decisions, we are also seeing that clients are consolidating their services with established service providers,” Sify Technologies Chairman and Managing Director Raju Vegesna said.

“We have seen a consistent upward trend in both revenue and profitability. Apart from increased sales of our services portfolio, the other major reason for our improved performance has been our continued strict adherence to financial discipline,” Sify Technologies Chief Financial Officer M.P. Vijay Kumar said.

The company said telecom services grew by 35 per cent during the quarter over the same period of the previous year.

“The new Data Centre at Noida is seeing a lot of traction. Work on the new Data Centre at Mumbai is being accelerated to expand capacity”, it said.

The capital expenditure during the quarter was Rs. 70 crore and the cash balance at the end of quarter was Rs. 161.40 crore, it said.

The telecom network established by Sify Technologies connects 30 client data centres countrywide in addition to Sify’s own five Tier-III data centres across Chennai, Mumbai, Delhi and Bangalore, the statement added.

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