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Sify Technologies (SIFY +0.24%) stock is getting hit hard with sell-offs on Monday. The Indian communications and IT services company's share price was down 5.5% as of 1 p.m. ET. Shares had been off as much as 9.2% earlier in trading. Sify published its latest quarterly results on Oct. 25, and the company's American depositary receipts (ADRs) got hit with a big valuation pullback after the U.S. market opened. Despite the sell-off, the stock is still up 298% year to date as of this writing. Sify Technologies stock sinks on soft fiscal Q2 numbers Sify recorded revenue of approximately 10.5 billion Indian rupees (approximately $119 million) for the second quarter of its current fiscal year -- a period which ended Sept. 30. Meanwhile, earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at roughly 2.36 billion INR (approximately $26.7 million). EBITDA surged roughly 20% year over year, but sales only increased 3% compared to the prior-year period. What's next for Sify Technologies? Sify has been investing heavily to build out data centers and other infrastructure to support artificial intelligence (AI) computations and related services. Many of the company's in-development data centers have yet to come on line operationally, leading to relatively weak sales growth. While it's likely that Sify will eventually see significant sales increases in conjunction with the commencement of new data center operations, some strong growth has already been priced into the company's stock. With sales growth currently coming in at such muted levels and a somewhat uncertain timeline for when the company's new data center projects will be active and shift into operational profitability, Sify stock could continue to see high levels of volatility.
