Dear Shareholders,
As India embarks on an increasingly assertive path toward comprehensive digitalization,
interconnecting every region and citizen of the nation, STL stands resolute in its
commitment to play a pivotal role as an enabler in realizing this profound goal.
Our relentless efforts are meticulously directed towards enhancing our services,
fuelling our determination to contribute substantive value to all stakeholders. In this
pursuit, we remain dedicated to not only keeping pace with the evolving landscape of
digitalization but also catalysing its transformation into tangible reality.
Reviewing global scenario
In 2022, the global economy faced multiple challenges, including inflation-taming
monetary policies, growth slowdowns, and the Russia-Ukraine conflict. China's strict Zero
COVID policy initially hampered growth, but its early Q3 reopening spurred a rapid
recovery. Despite these obstacles, the US, Europe, and key emerging markets saw momentum
in Q3, leading to 3.4% global growth (2.7% for advanced economies; 4.0% for emerging
markets).
Indian Economy Snapshot
Amid global challenges like tightening monetary policies and growth slowdowns, the
Indian economy showcased remarkable resilience. With a GDP growth of 7.2% in FY 2022-23,
it outpaced major economies, driven by robust capital formation and private consumption.
FY 2022-23 saw increased private consumption and capital formation, fuelling production
and sectoral capacity. Notably, the Central Government's budget forecasts a substantial
37.4% surge in FY 2023-24 capital expenditure. Healthy corporate and public bank balance
sheets signal an imminent boost in private capex.
Surging Digitalisation demand in India
India's telecom industry ranks second globally, boasting a subscriber base of 1,170.75
million (wireless + wireline) as of January 2022. While the nation's overall tele-density
is 84.51%, rural areas remain largely untapped at 58.01%, contrasted by the urban market's
134.62% tele-density. As of
January 2023, internet subscribers soared to 839.18 million (narrowband + broadband),
with rural areas accounting for 44.25%. Impressively, average monthly data consumption per
wireless subscriber surged by 22,605% to 16.40 GB in June 2022 from 61.66 MB in March
2014.
Anticipating the future, India targets 350 million 5G subscriptions by 2026, forming
27% of all mobile subscriptions. With the launch of 5G services by Prime Minister Narendra
Modi on October 1, 2022,
India solidifies its digital trajectory. The Digital India initiative links sectors
like healthcare and retail through the internet. Notably, India ranks second in
"international mobile broadband internet traffic" and "international
Internet bandwidth."
Highlighting the commitment, the 2023-24 Union Budget allocated Rs. 97,579.05 Crore
(US$ 11.92 billion) to the Department of Telecommunications. This includes Rs. 400 Crore
(US$ 48.88 million) for Research and Development and Rs. 5,000 Crore (US$ 611.1 million)
for Bharatnet. The stage is set for India's digital journey.
India's 5G subscriptions to have 350 million by 2026, accounting for 27% of all mobile
subscriptions. Prime Minister Mr. Narendra Modi launched 5G services on October 1, 2022.
The Government of India has introduced Digital India programme where sectors such as
healthcare, retail, etc. will be connected through internet. India ranks 2nd in
"international mobile broadband internet traffic" and "international
Internet bandwidth." In Union Budget 2023-24 the
Department of Telecommunications was allocated Rs. 97,579.05 Crore (US$ 11.92 billion).
Of this, US$ 48.88 million (Rs. 400 Crore) is for Research and Development, US$ 611.1
million (Rs. 5,000 Crore) is for Bharatnet.
STL: Ready to lead
In this business landscape, STL stands poised at a pivotal moment. As India surges
forward in enhancing its digital connectivity infrastructure, the demand for our services
is set to soar. We envision a vital role in driving the nation's digital transformation,
fostering inclusive access and bridging the digital divide. Our 25 years of experience in
building towers and we being specialised in low cost towers and low turnaround time in
delivering our project, has yielded consistent positive results for us in terms of
substantial financial growth, enhancing both revenue and EBITDA.
As we advance, STL emerges as a key player in establishing nationwide 5G connectivity.
Our 5G-ready systems and comprehensive infrastructure empower us to extend cutting-edge
telecommunications throughout India. Through this journey, we remain committed to
delivering steadfast value to stakeholders - investors, customers, employees, communities,
regulators, partners, and beyond. We humbly request your continued support as we transform
our vision into reality, propelling our future growth.
| Best Regards, |
| Shivshankar Lature |
| Managing Director |