Railtel Corporation of India Ltd

Dear Shareholders,

It gives me immense pleasure to address my 3^rd Annual General Meeting as Chairman and present the 24^th Annual Report of our esteemed company. We are at an interesting stage in the development of our country and company alike and intend to make maximum of the emerging opportunities to grow in a sustainable way. Despite challenging global market conditions, we?ve showcased remarkable performance, making this year particularly special as we enter our 25^th foundation year. It?s with immense pride that I share RailTel?s transformation from an in-house telecom service provider for Indian Railways to one of the nation?s largest neutral telecom infrastructure providers and a trusted IT & ICT service provider. With a market capitalization of about Rs15000 crore and growing investor confidence, we aim for consolidation and further expansion.

Our commitment to enhancing and maintaining our expansive nationwide network remains unwavering, spanning over 62,000 RKM of high-capacity OFC network along railway tracks, supported by a citywide access network exceeding 21,000

KM. Reinforced by UPTIME USA certified TIER

III Data Centres, MeitY empanelled cloud i.e. ‘Railcloud,? a state-of-the-art Security Operation Centre, Network Operation Centres, and a workforce of over 800 skilled professionals, we are poised for growth. A planned capital expenditure investment of approximately Rs250 crore for FY 25 will further fortify our vital network.

I?m thrilled to announce that RailTel has achieved record-breaking growth once again. For the fiscal year ending March 31, 2024, we posted a total income of Rs2,622 crores and a total PAT of Rs246 crores, reflecting a remarkable 31% increase in both turnover and profits compared to the previous year.

Our telecom segment contributed Rs1,265 crores, while the project segment added Rs1,302 crores to our operating turnover. Notably, for the first our project income has surpassed our telecom income.

In line with our financial commitments, we have paid Rs82 crores to the Department of Telecommunications (DoT) for license fees and Rs43 crores as revenue share to Indian Railways. We have also issued an interim dividend of Rs1 per share, equating to 10% of the paid-up share capital, benefiting all our shareholders. Additionally, I am pleased to inform you that the Board of Directors has recommended a final dividend 18.5% of paid-up share capital (Rs1.85/- per share) for the financial year 2023-24, subject to shareholder approval at the upcoming AGM. Our Earnings per Share for the fiscal year 2023-24 stood atRs7.67.

This is the era of rapid digitalization which has fuelled an unprecedented demand for data storage facilities as well as proactive cyber security. RailTel in addition to having various telecom licenses, has two Tier III Data Centres, MeitY empanelled cloud- ‘RailCloud? and an in-house specialized Security Operation Centre (SOC). There are very few govt companies in India with this unique mix of service under one roof. Understanding potential of this, we are actively working on expanding the capacity of our data centres and cloud infrastructure through strategic capital expenditure investments.

We have established partnership to set up 102 Edge Data Centres across country at multiple locations within railway premises/land. This has huge business potential given the low latency streaming demand rise for OTT platforms, gaming etc. We are starting to roll out the set ups and this will reflect in our revenues soon. Furthermore, your company is actively working on establishing another state-of-the-art data center in Noida in by inviting private investment partnership.

RailTel serves as the digital transformation partner of the Ministry of Railways undertaking ambitious projects aimed at modernizing Indian Railways like

NIC e-Office solution across 236 units, Public Wi-Fi at 6108stations,IP-basedVideoSurveillanceSystemsat 5000+ railway stations etc. RailTel?s implementation of the Hospital Management Information System (HMIS) across 709 healthcare facilities of Railways enhances hospital administration and patient care by maintaining electronic medical records. We?ve developed teleconsultation and beneficiary apps, seamlessly integrated with HMIS, empowering medical beneficiaries. Integrating HMIS with the

Ayushman Bharat Digital Mission (ABDM) further enhances healthcare capabilities.

We are committed to creating safer, more and digitally empowered railway infrastructure, fostering the growth and modernization of Indian Railways. The invaluable experience gained by RailTel in implementing solutions for Indian Railways is opening new opportunities across various government departments.

Railway Telecom & Signalling plays a very crucial role in operational

Railways. RailTel has core expertise to execute such high-tech modern projects for improving train operation as well as safety. We are currently working on a project of replacing the old mechanical signalling with Electronic Interlocking at 26 stations of Northern Railway. We are also working on installing Integrated Tunnel Communication System on a number of critical sections of the Indian Railways network. Recently your company has been entrusted with the work of Implementation of unified communication infrastructure comprising IPMPLS LAN Infra, VOIP exchange, IP based control communication and replacement of UTN over Western Railway. Indian Railways is rapidly modernizing its signalling system with initiatives like LTE-R and Kavach and we are aiming to become an integral part of this ambitious journey. We have already secured a project to provide comprehensive Ground Infrastructure

Works for 4G LTE-R over 523 RKM in Secunderabad

Division, South Central Railway. Moving forward, we will focus on participating in projects related to Kavach and similar safety systems. Recently we have signed an MoU with Quadrant Future Tek Limited, establishing an exclusive partnership to aggressively pursue Kavach tenders. Quadrant Future Tek Limited is in the final stages of RDSO approval as an OEM for the Kavach project. With this partnership we are dedicated to contributing to Indian Railways? implementation of indigenous safety systems like Kavach and exploring the potential to proliferate Kavach technology internationally.

In order to ensure the availability of competent and skilled manpower in the field of Railway Signalling, we have launched a Centre of Excellence (CoE) for Railway Signalling, Telecommunication and Cyber Security training. In collaboration with esteemed institutions such as IITs, the CoE will offer a spectrum of certifications and courses covering pivotal like KAVACH (Automatic Train Protection) and Cyber Security. Additionally, the CoE intends to serve as the assessment agency for the globally recognized competency certification of IRSE License, catering to both seasoned Railway professionals and young engineers.

The G20 Summit in New Delhi marked a pivotal moment for the country, as world leaders convened to address various global concerns. RailTel played a crucial role by delivering integrated telecom solutions at ITPO, Pragati Maidan in New Delhi focusing on the newly inaugurated Bharat Mandapam and exhibition halls. This assignment was both a significant challenge and a prestigious opportunity for the company.

To meet this challenge, RailTel and its partners established state-of-the-art mobile network infrastructure and a neutral in-building telecom infrastructure, significantly improving mobile coverage across the 122-acre ITPO campus. Wi-Fi infrastructure was strategically placed in outdoor corridors and various halls designated for G20 events, seamlessly integrated with the indoor Wi-Fi infrastructure.

RailTel also addressed cybersecurity concerns by deploying necessary security solutions to safeguard the network. Additionally, the company provided end-to-end bandwidth to integrate camera feeds from Bharat Mandapam, Rajghat, New Delhi Parliament Street, and other locations to the Delhi Police HQ at Jai Singh Marg.

Successful delivery of this project solidifiedRailTel?s position as a trusted telecom solution provider. The telecom setup at ITPO not only provides a steady revenue stream from year-round events at Pragati Maidan but also serves as a model we plan to replicate at other large-scale venues

Our retail broadband service RailWire serves 5.70

Lakh subscribers through successful partnerships with more than 10,500 partners. RailWire generated revenue of Rs344 crorein FY 24.

Extending the idea of bringing digital connectivity to all, we have joined hands with Gujarat Fibre Grid Network Limited (GFGNL) for providing FTTH/FTTX services across 22 districts of Gujarat via a revenue-sharing model. This agreement aims to bring broadband connectivity to homes, government offices, health centres, Anganwadi centres, post offices, and banks in 8080 Gram Panchayats, offering high-speed internet and Quad Play Services (FTTH, IPTV, OTT, Digital Services). This has good revenue potential and we are also exploring similar opportunities in other states.

RailTel has a strong presence across multiple sectors, including Railways, IT, Defense, Health, Mining, Coal, Banking, Smart Cities, Insurance, and more. We maintain a robust order book valued at about Rs4750 cr, regularly winning multi-crore bids, mostly through open tendering including orders of Rs556 cr from Railway. In FY 24 alone, we have won orders worth about Rs2870 cr. This shows RailTel?s competitive edge and its ability to excel even in demanding circumstances.

Recently, we?ve focused on bidding for diversified projects, gaining opportunities to work on unique initiatives. We have been selected as the Master System Integrator for Prasar Bharati?s OTT platform.

We have also secured a significant order worth Rs 351.95 crore (excluding GST) to implement a Health Management Information System (HMIS) for the Brihanmumbai Municipal Corporation. Additionally, we are working with the Directorate of Geology and Mining, Government of Madhya Pradesh, to implement an AI-based Smart Enforcement System to curb illegal mineral transportation, with three years of operation and maintenance.

These projects and such many more are promising, opening doors to numerous similar opportunities in other organizations/state governments.

Your company is actively seeking business opportunities in Southeast Asia and Caribbean countries. We?re currently in discussions with Vietnam Railways for their upgradation projects and other service areas. Our experience in supporting Indian Railway?s digital transformation and upgradation positions us well for similar opportunities in developing and underdeveloped nations.

We?ve signed a tripartite MOU with InoviTel (PTY) LTD and Tsiko Africa Energy & Infrastructure for Tsiko Group. This collaboration allows us to explore opportunities in telecom, railways, and other IT/ICT sectors in South Africa and the surrounding region.

This marks a significant step in expanding RailTel?s services internationally.

RailTel has forged strategic partnership with IITM Pravartak for training on advanced networking, 4G/5G, security etc. We have also signed a MoU with University of Birmingham for development of Digital Twin for railway operation and maintenance. Additionally, our collaborations with premiere organizations such as IIIT-Delhi, AIIMS-Delhi, CDOT, NIC & NICSI, and CDAC aim to introduce innovative solutions spanning healthcare, IT, and ICT domains.

Our greatest strength is our talented and dedicated workforce. We invest in their continuous development through extensive training programs in areas like Cyber Security, AI for Business, Public Procurement, Finance, HR, and more. In line with the government?s Skill Development initiative, we annually welcome apprentices, offering them valuable training and hands-on experience.

To support our growing operations, we?ve recently added over 140 skilled and dynamic professionals to various teams within RailTel.

In FY 2024, your company achieved remarkable success, earning six prestigious awards from esteemed organizations like SCOPE, Express Computer, Dun & Bradstreet, Governance Now, and CMO Asia. Notably, the SCOPE award was presented by the Hon?ble Vice President of India, Sh. Jagdeep Dhankhar. These accolades highlight RailTel?s exceptional accomplishments and reinforce our leadership in the industry.

At our company, we prioritize strong corporate governance principles, upholding values of transparency and integrity. To ensure ethical governance, we have established several committees: Audit, CSR, Nomination and Remuneration, Stakeholder Relationship, and Risk Management. RailTel adheres to all guidelines from the Department of Public Enterprises and the Government of India, supporting the Make in India program. Our commitment to compliance ensures we operate within the regulatory framework, fulfilling our responsibilities to stakeholders and creating long-term value for our organization and its community.

Corporate Social Responsibility (CSR) is the cornerstone of our commitment to positively impact society while achieving business success. In FY 24, RailTel allocated an amount of Rs484.49 lakh towards various CSR projects. These initiatives include our flagship program of Super-30, Operating Sehat

Centre, donating fully equipped ambulance, providing health and nutrition to children of sex workers, poor women in weaver?s village and other needy orphaned children. These initiatives reflect our dedication to creating a better world for future generations while driving innovation and growth within our company.

I want to take this moment to extend my heartfelt gratitude to our shareholders, members of the Board of Directors, Chairman & CEO of the Railway Board, as well as the esteemed members and officers of the Railway Board, Zonal railways,

Ministry of Railways, DoT, MeitY, other government departments, and regulators. Your unwavering support, invaluable advice, and cooperative spirit have been instrumental in our success.

I also want to express my deepest appreciation to the RailTel team. It is through their hard work, commitment, and dedication that your company has achieved remarkable milestones. To all our stakeholders, I reaffirm our commitment to maintaining our growth trajectory. With your continued support and trust, we will forge ahead, striving for excellence and delivering value to all.

Jai Hind.