T he telecom industry is witnessing significant advancements over the last few years, transforming how people communicate, access informafi'on, and conduct business. These advancements span various aspects, including network technology, infrastructure, devices, and services.

As with many other aspects, India is ahead of the curve in this area as well. As of the end of last calendar year, India was the world's second-largest telecommunicafions market, serving a total telephone subscriber base of 1,190.33 million. We can only expect growth from here.

It is reflected in the percepfion and plans of the country's government, validated by the Rs 92,000 cr allocafi'on to the Department of Telecommunicafions in the Union Budget 2023-24. The internafional business community also tends to agree, as the FDI inflow in the sector reached US$ 42 billion from April 2000 to December 2023.

The progression from the first generation (1G) to the fifth generation (5G) of mobile networks has revolufionized telecom. 1G enabled analogue voice communication. 2G introduced digital voice and SMS. 3G brought mobile internet. 4G significantly improved data speeds, supporfing video streaming and mobile apps. 5G offers ultra-fast speeds, low latency, and massive connecfivity, supporfing loT and smart cifies. The global rollout of 5G networks is a significant undertaking, involving extensive infrastructure upgrades and collaborafion between governments, telecom providers, and technology companies. 5G promises to drive innovafion across various sectors, including healthcare, transportafion, and entertainment.

Modern smartphones, equipped with powerful processors, high-resolufion cameras, and advanced connectivity options have been pivotal to this growth. Serve as multifunctional devices, enabling communication, entertainment, and productivity smartphones have become an integral part of our lives. The proliferation of Internet of Things (loT) devices has also expanded the scope of telecom services. Ranging from smart home appliances to industrial sensors, reliance on telecom networks for connectivity and data transmission increases by the day.

When Steelman Telecom got into this business, it was the dream of the promoters to see India as one connected entity, without any divide between the rural and urban segments when it comes to communication. It gives us great pleasure to find ourselves contributing to this national achievement.

Telecom companies are adopting energy-efficient technologies and practices to reduce their carbon footprint. This includes using renewable energy sources, optimizing network equipment, and promoting sustainable practices.

The only concern that I have for the industry is with the rapid turnover of telecom devices managing electronic waste will remain a critical issue. All associated companies need to implement recycling programs to mitigate environmental impact. I assure you that Steelman will take measures to lead on this front as well. We shall also actively try and use products with longer lifespans to ensure less e-waste generation.

Taking a detour from telecom, I wanted to take the opportunity to share my experience while visiting the implementation sites. Education is the cornerstone of progress and empowerment. Our tribal communities are rich in culture and tradition, yet they often face significant barriers to education. Addressing these challenges is not just a moral imperative but a strategic investment in the future. By educating tribal children, we empower them to break the cycle of poverty and contribute meaningfully to society. Education provides these children with the tools to access better job opportunities, improve their quality of life, and become leaders within their communities. It fosters critical thinking, innovation, and resilience, qualities essential for navigating an increasingly complex world.

I congratulate the team for taking up initiatives that focus on providing access to quality education, TELECOM including scholarships, school infrastructure, and digital learning resources to the tribal children. Collaboration with local organizations is also a welcome approach, as it ensures that programs are culturally relevant and sustainable. By investing in the education of tribal children, Steelman is investing in a brighter, more inclusive future for all.

I end this note urging all to stay confident that together, through unity, innovation, and dedication, we can build a brighter future for our nation, where every dream and every potential will be realized.

From

The Desk of the Managing Director

I am happy to report that your company has closed FY 2023-24 with 43.91% growth in revenue, with a PAT increase of 31.45%.

The industry that your company operates in is at a point of constant inflection. New technologies get introduced, bringing in continuous improvements to the field of telecommunication. We have known this since our inception in the Year 2003 and always stayed ready.

The Year 2023-2024 came with a new dynamic. The largest democracy in the world was getting ready to choose their government at the centre. The economy had also started changing direction and was searching for a greater depth towards a self-sustaining process of growth. India's economic growth for the full 2023/24 fiscal year was revised up to 8.2%, also the highest among large economies globally.

And the business that Steelman Telecom is in, we need to stay constantly ahead of the curve. The swings notwithstanding, the upward trend of business of your company has remained persistently stable. This signifies opening up a huge possibility across the entire spectrum of the industry, in India and internationally. The thought has always been how to leverage the situations to the advantage of Steelman and its shareholders.

I am happy to report that we are well on our way to realigning the organisation towards maintaining this goal.

I am not repeating the performance metrics of your company, which are elaborated in the succeeding sections. But it will perhaps not be out of place in this context to reiterate the basic goal that defines and separates Steelman Telecom from other companies operating in the same space. As we know, service providers in the telecom industry are heavily dependent on their teams. Your company has put in a special effort to ensure that we work towards the concept of having a double bottom line, viz.,

(a) commitment to benefitting those who work for Steelman Telecom, and

(b) a financial commitment to operating profitability.

I am proud to report that over the years we have developed a team of dedicated and high-skilled technicians, engineers, and support staff who make our journey of growth possible.

We also acknowledge that many of these teams work in environments that are prone to safety hazards, for which your company takes adequate measures to provide safety kits. This year, we went a step further, by starting Family Connect Programs where we organise regular meetings to sensitize the immediate family and dependants on the safety precautions that the workers need to take. We are hopeful that the constant reminders from near and dear ones will help increase the adoption of health and safety best practices.

No report from any responsible organisafi'on should go without a menfi'on of the contributions made to the environment and society. From this perspecfi've, it makes me proud to menfi'on that your company scores high. As you are aware we hold a 53.10% share in our subsidiary, EC Wheels which operates a 100% electric vehicle-powered fleet offering ride-hailing service in Kolkata, under the brand name Snap-E Cabs. Every kilometre run by Snap-E Cabs saves on the opportunity cost of fossil fuel usage and increases the green cover of the city. Not stopping at that EC Wheels has rolled out charging infrastructure across Kolkata for EV Charging and will be adding more such facilities to augment EV Charging facilifies for captive and public requirements, thus mofivafing the adoption ofZero Emission vehicles.

In the course of the year, your company has organised several nature camps with the employees and their families, especially children. The objective of such camps has been to orient participants on the help we get from nature and also plant saplings.

You will also be happy to note that Steelman Telecom has also started contribufing to grooming the future generation. With this vision, your company has taken responsibility for the education of several children from the tribal districts of Kandhamal and Koraput in TELECOM Odisha. Over the next few years, we plan to expand the geographical coverage and number of children. It is only through education can we expect our future generation hailing from less connected areas climb up the financial and social pyramids.

The plan for 2024-25 is to reach a revenue target of Rs 250 cr with a higher consolidated PAT. We are confident that both our subsidiaries, EC Wheels and Ethiopia-based Steelman Infrastructure Services, will become more self-reliant and contribute positively towards revenue growth and profitability. Looking further into the future, your company is all set to grow steadily at 30-50% Year-on-Year at least for the next 5 years.

As menfioned earlier in my note, for any service company, human capital is the most important. It will be a matter of pride for all of us when we touch our target of employment generafion for 10,000 professionals (direct and indirect). I promise to put in most of my effort on this front.

I started by saying that we need to be extra nimble to stay up to speed with the technology advancements. And I assure you that Steelman Telecom will never fire of ensuring this commitment, even as it confinues its journey of growth.