Sify Technologies : Integrated Report 2021

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Sify Technologies Limited

I N T E G R AT E D R E P O RT 2 0 2 0 - 2 1

Contents

CHAPTER 1

Reporting Framework

2

CHAPTER 2

Statement from the Chairman	6
Statement from the CEO	10
Statement from the CFO	14

CHAPTER 3

About Sify	20
Stakeholder Engagement	22
Stakeholder Testimonials	26

CHAPTER 4

The business verticals	30
Network Centric Services	31
Data Center Centric IT Services	36

CHAPTER 5

The Operating Environment	48
The Quarterly Performance	50
Key Performance Indicators	54

CHAPTER 6

The Business Model	58
Financial Capital	60
Manufactured Capital	62
Intellectual Capital	64
Human Capital	68
Social & Relationship Capital	74
Natural Capital	76

CHAPTER 7

Mega Trends	80
The Blueprint	84
Risk Management	86

CHAPTER 8

Governance & Reporting	96
Board of Directors	98
The Management Team	102

CHAPTER 9

Our ESG Profile

106

CHAPTER1

Welcoming our stakeholders to the 2020-21 Integrated Report

INour mission to pursue sustained value creation as a responsible organization, we are proud to present our fifth Integrated Report. This Report aims to provide

detailed insights into our financial and non-financial performance encompassing our strategy, leadership and culture and to showcase our value creation process to our stakeholders.

Reporting framework	continuing view to the	of its strategy and the
The report follows	stakeholders.	organizational ability to
the International	Our core elements to	create long-term value.
Framework as	enhance value creation	Our Board acknowledges
developed by IIRC (www.	Our 2020-21 Integrated	the contents of this Report,
integratedreporting.	Report adequately	which are prepared under
org) and should be read	showcases our integrated	the guidance of our senior
in conjunction with the	organizational strategy,	leadership and based on
financial statements and the	considering important risks	the inputs received from
notes thereto.	and valued inputs from our	various key functions. To
Reporting scope and period	Stakeholders. Our report is	ensure the integrity of
The Integrated Report	defined by the contours of	facts and information, the
covering information on	the material topics derived	Board of Directors and
our business operations	and further elaborated in	management have reviewed
is aptly disclosed through	our six Integrated Reporting	the Integrated Report.
six capitals as defined by	Capitals. We also endeavor
International Integrated	to ensure that this Report
Reporting Council (IIRC).	addresses the impact and
The Integrated Report	use of the Capitals on
considers the primary	our strategy and business
reporting period as April	model.
01, 2020 to March 31,	Responsibility statement
2021. However, some of	Our Board believes that
the sections of the report	Sify's 2020-21 Integrated
represent facts and figures	Report addresses all
of previous years to provide	material topics, offers a
a comprehensive and	balanced and holistic view

6 Integrated Report capitals
Financial	Manufacturing	Intellectual	Human	Social &	Natural
Capital	Capital	Capital	Capital	Relationship	Capital
				Capital

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Introducing the capital

Inputs that deliver value

		Manu-				Social &
	Financial	factured	Intellectual	Human	Natural	Relationship
	capital	capital	capital	capital	capital	capital
What is it	Resource,	Tangible in-	Intangible,	People,	Natural	Collaborating
	generated	frastructure	knowledge-	their skills,	resources	and
	or procured	deployed	based assets	their passion	consumed	communicating
	that are	to provides		and their	by business	with
	invested in	services and		performance	operations	stakeholders;
	the business	generate		in building		looking
	to create	revenue for		the business		towards the
	value	the Company				well-being of
						society
Manage-	Sustain	Maintain &	Innovation	Nurture an	Optimise	Build trust
ment	the growth	create assets	to be a key	inclusive and	the burden	among
approach	momentum	that deliver	component	balanced	of business	stakeholders
		superior	of growth	work	operations	and participate
		service		environment	on the Earth	in community
						development

Highlights 2,43,195	71.14	540	204
FY21
Revenue	Data center	Addition to	Investment in
(INR Lakh)	capacity	team	society (INR
50,854	(MW)	66,105	Lakh)
30,239
EBITDA	Training
(INR Lakh)	Capex	(Person
15,317	(INR Lakh)	hours)
Profit after
Tax (INR
Lakh)

Sify Technologies Limited	003
INTEGRATED REPORT 2020-21

Sify's Management Team believes that with digital transformation emerging as the new business mandate, Sify is in a vantage position to catalyze this transformation.

004	Sify Technologies Limited	005
INTEGRATED REPORT 2020-21

CHAPTER2

STATEMENT FROM THE CHAIRMAN

With the government laying more emphasis on self-reliance and data protection through localization, the demand for data center outsourcing market in India is expected to average 25% annual growth by 2023-24 to touch US$ 5 billion.

Dear friends,

Data is the new Oil

Indeed. Data in the 21st century is what oil used to be in the 18th century: An immensely untapped valuable asset. As we move deeper into this age of digital economy, data gets more valuable than ever. In fact, data has become the key to the functioning of almost everything

• from governments to small roadside stores. Without data, progress halts.

It's raining Internet around the world

Affordability and accessibility have made internet a productive tool for a major chunk of the global populace. It is believed that over 2.5 quintillion bytes of the data is created every day around the world, and this number is increasing by the day with the ever-increasing digital footprint.

In India, data generation is on a frenetic spurt

In the last five years, India's efforts to be a fully digital economy have resulted in better internet connectivity and infrastructure. Many robust developments

such as the exponential growth of data, big data Analytics, e-commerce, digital wallets, artificial intelligence and the upcoming shift to 5G technology have been catalyzed by this digital drive. The average Indian would use about 12 GB data every month in 2019

• the highest consumption globally - and this is

expected to reach 25 GB (gigabytes) by 20252. This is being driven by affordable data connectivity services and the increase in rich media consumptions. With the government insisting that all data generated in India be stored locally, Data Centers will be the next big business opportunity.

Securing the treasure gets more critical than ever As we entered 2021, we came to know of a massive heist and the media reports that security researchers have found that in a breach of servers of a reputed payment gateway, sensitive data of over 100 million credit and debit cards users have been leaked on the

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Sify Technologies Limited

INTEGRATED REPORT 2020-21

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