Dear Shareholders,
The year 2023-24 was a momentous one leading to a significant milestone
for the Company when the number of its shareholders increased from 2 to several lakhs. The
recent IPO of 7.5 Crore shares was oversubscribed about 30 times, making it a resounding
success, a great vote of confidence in the Company, and a humbling experience for all of
us. I extend my heartfelt gratitude to all our investors for reposing faith in the
Company. We look forward to a future of transformational growth, steadfast in our
commitment to serve our customers and all stakeholders with unwavering dedication.
The Indian economy has shown remarkable resilience in the face of
global uncertainties and sustained its performance, driven by strong investment outlay by
the Government of India in the areas of manufacturing, infrastructure, supply chain,
logistics, and more. The structural policy framework paves the way for a vision of
sustainable and long-term growth for the nation. In addition, Central Bank's agility
to address global shocks and inflationary pressures has been supporting the country's
economic progress. The telecom industry is the backbone of India's digital economy
and a principal catalyst for its overall growth. This sector is playing a pivotal role in
expanding connectivity and providing value added services to facilitate businesses to
thrive and grow. FY 2023-24 was notable year for the industry with a rapid 5G rollout
across the country. 5G has the potential to create new capabilities and enable new
business opportunities for a host of industries, including education, healthcare,
transportation, gaming, financial services and many more. In the areas with low fixed line
penetration, 5G can unleash growth opportunities and meet high data demand through fixed
wireless access (FWA) offerings. The Government's supportive approach towards the
sector continues and the new Telecommunications Act will promote investment in the sector
along an orderly growth path. Rajasthan and Northeast , the telecom circles in which your
Company operates, provide long-term growth opportunities. Though not densely populated,
these regions, with significant scope of expansion of digital services, contribute
significantly to the nation's economy. Both mobile and fixed line data penetration is
lower than the national average in Rajasthan and the Northeast, providing the potential
for long-term growth for the telecom industry. The Government's focus on improving
connectivity and infrastructure in these regions further opens the doors to promising
opportunities.
Over the years, Bharti Hexacom has made significant investments across
these regions to bolster connectivity and support economic growth. In FY 2023-24, we
invested about H 20 billion in the business, one of the highest in the history of the
Company, contributing to the rapid rollout of 5G services and expanding our coverage in
rural areas. The Company added 2.5 million 4G/5G customers with total data customers now
accounting for 72.3% of the total base as compared to 55.6% three years back. Over the
last three years, the Company has expanded home broadband offerings to 93 cities from 23
cities in FY 2020-21, through innovative and trusted local cable operator partnerships
across the regions. Our simple strategy to attract quality customers by giving them
exceptional experience has fortified our leadership in Northeast and consistently narrowed
the gap in Rajasthan. As a result, we ended FY 2023-24 with lifetime-high revenue market
share in both markets. Superior revenue growth, coupled with organic operating leverage
and operational excellence driven by our relentless focus on driving cost efficiencies,
has led to strong EBITDA growth over the years. Operating free cash generation and prudent
capital allocation supported sustained deleveraging for the Company. Net-debt to EBITDA
for FY 2023-24 stood at 2.2x as compared to 2.8x in FY 2022-23. With no renewal of
spectrum till FY 2029-30 and the past dues limited to payment of instalments for spectrum
auctions of 2021 and 2022, your Company is headed to having an even more robust balance
sheet.
Looking ahead, we remain committed to our simple and clear strategy of
providing a bouquet of top quality telecom services and the best consumer experience under
the Airtel brand to our ever-growing number of customers. This will be made possible by
our excellent leadership and management team, comprising professionals with technical
expertise and dedication. We are excited about the opportunities that lie ahead and with
the Indian telecom sector entering an era of increased profitability, we are optimistic
about the potential of your company to deliver many years of achievement, growth and
success. Bharti Hexacom is deeply conscious of its responsibility to the environment and
its obligation to the society at large. Beyond immediate business priorities, the Company
is also taking concrete steps to reduce its environmental footprint and adopt energy
conservation and technology absorption initiatives. Additionally, it is committed to
transparency and effective governance and fostering a diverse and inclusive workplace
while maintaining stringent health and safety standards.
We owe our success in FY 2023-24 to the efforts of our Board of
Directors, management team, and our employees. I would also like to extend my gratitude to
our customers, suppliers, agents, and all our partners and shareholders for their
contribution and support. I thank the outgoing directors Shri. Sanjeev Kumar, Shri.
Surajit Mandol, Mr. Rahul Vatts, Mr. Ravinder Arora and Ms. Vidyut Gulati for their
contribution to the Company and welcome Mr. Ashok Tyagi, Mr. Arvind Kohli, Mr. Arun Gupta,
Mr. Kapal Kumar Vohra and Ms. Nalina Suresh as Independent Directors to the Board.
| Jagdish Saksena Deepak |
| Chairman |