CHENNAI, India - Sify Technologies Limited (NASDAQ: NASDAQ:SIFY), a prominent Indian Digital ICT solutions provider, has announced the appointment of Dr. Ajay Kumar as a new Director on their Board. Dr. Kumar, an Indian Administrative Service officer of the 1985 batch, previously served as the Defence Secretary for the Government of India, bringing a wealth of experience in technology and policy.
During his tenure in government, Dr. Kumar has been recognized for his contributions to the defence industry, particularly in fostering a startup ecosystem through initiatives like iDEX from 2017 to 2022. He also played a pivotal role in the Digital India campaign, which included projects such as Aadhaar and UPI from 2014 to 2017.
His academic credentials include a B.Tech in electrical engineering and a PhD in business administration from the University of Minnesota. Following his retirement, Dr. Kumar joined the Indian Institute of Technology, Kanpur, as a Distinguished Visiting Professor.
The chairman of Sify Technologies, Mr. Raju Vegesna, welcomed Dr. Kumar, stating his confidence that Kumar's extensive multi-industry experience will enhance the company's business strategy and corporate governance. Dr. Kumar expressed his pleasure at joining the company, praising Sify's unique position with its converged ecosystem of Networks, Data Centers, and Digital tools.
The announcement also marks the departure of three long-serving Directors, Dr. T H Chowdary, Mr. C B Mouli, and Mr. C E S Azariah, from the Board. Mr. Vegesna expressed gratitude for their mentorship and service to the company.
Sify Technologies, a Fortune India 500 company, offers a comprehensive portfolio of ICT solutions and services, with a focus on the evolving demands of the digital economy. The company has a significant presence in India and operates internationally in North America, the UK, UAE, and Singapore.
The information in this report is based on a press release statement from Sify Technologies Limited.
In other recent news, Sify Technologies reported mixed financial results for fiscal year 2023-2024. The company saw a 7% increase in overall revenue, reaching INR 35,634 million, with growth in data center colocation services and network-centric services by 9% and 10% respectively. However, the company experienced a significant decline in profits with profit before tax and profit after tax decreasing by 77% and 93% respectively.
This comes as Sify continues its investment in infrastructure and services, including a $7.22 million venture capital initiative in Silicon Valley startups and proposed rights offering to finance data center expansion and digital services business growth.
Looking ahead, Sify plans to launch two new greenfield data center projects in Noida and Chennai in fiscal 2025, with additional capacity expansions planned for Mumbai and another city in the following fiscal year.
InvestingPro Insights
As Sify Technologies Limited (NASDAQ: SIFY) welcomes Dr. Ajay Kumar to its Board, the company's financial health and market performance remain a key focus for investors. According to recent data from InvestingPro, Sify has a market capitalization of $86.9 million and is operating with a significant debt burden, which is an important consideration for stakeholders. The company's Price / Book multiple is currently at 0.3, suggesting that the stock could be undervalued relative to its book value, potentially offering an attractive entry point for value investors.
Despite recent challenges, Sify's net income is expected to grow this year, indicating potential for improved financial performance. This forecast aligns with the company's strategic initiatives and the expertise that Dr. Kumar brings to the table. However, it's essential to note that the company's stock has experienced high price volatility, with a one-month total return of -53.98% and a six-month total return of -73.67%, reflecting the market's sensitivity to both internal and external factors affecting Sify.
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