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Railtel Corporation of India Ltd.

BSE: 543265 Sector: Telecom
BSE 00:00 | 10 Aug 98.15 -0.60






NSE 00:00 | 10 Aug 97.95 -0.90






OPEN 99.10
VOLUME 26171
52-Week high 153.90
52-Week low 84.00
P/E 15.12
Mkt Cap.(Rs cr) 3,150
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 99.10
CLOSE 98.75
VOLUME 26171
52-Week high 153.90
52-Week low 84.00
P/E 15.12
Mkt Cap.(Rs cr) 3,150
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Railtel Corporation of India Ltd. (RAILTEL) - Chairman Speech

Company chairman speech

New Normal' demands a digital ecosystem for sustainability of business compellingorganizations to adapt to technology enabled digital platforms at a rapid pace

It gives me immense pleasure to present to yon the 21st Annual Report ofyour Company.

I am happy to state that despite fierce competition in the market RailTel is on asteady growth path and is one of the very few profitable debt free and dividend payingtelecom PSU's.

RailTel a millennial company started its journey in the year 2000 as a Telecom serviceprovider of Indian Railways. But within mere two decades of operation it has become oneof the largest neutral telecom infrastructure and ICT service providers of the country.Today RailTel is a Rs. 1400+ Cr company with 60000 + RKM high capacity OFC network alongRailway Track 18000+ KM Citywide Access Network two UPTIME USA certified TIER III DataCentres MeitY empanelled Railcloud State of the Art Security Operation Centre and 700+manpower which serve as a backbone of its services. From becoming a trusted partner inIndian Railway's Telecom and Signalling projects to diversifying into various branches ofIT and ICT it has been a challenging yet extremely rewarding journey. From a vanillabandwidth provider RailTel has metamorphosed into an integrated ICT service provider.

Today I can proudly say that your company has become a trusted ICT partner for Govtas well as Private organizations including a few Fortune 100 companies.

Results & Progress

During FY 20-21 RailTel has achieved highest ever consolidated income of Rs. 1411Crore up by 21 % over consolidated income of Rs. 1166 Crore in FY 19-20. With thisRailTel has posted a Profit before tax amounting to Rs. 197 Crore and Profit after tax ofRs. 142 Crore for the Financial Year 2020- 2021 on consolidated basis.

The company registered a total income of Rs. 440 Crore in Q4 on consolidated basis whichis 5% increase over preceding quarter and 8% higher on Y-o-Y basis.

The company has paid an interim dividend of Rs. 32.09 crores to its shareholders. YourCompany is also required to pay Rs. 30.68 crores towards revenue share to Railways for theyear. The company is constantly discharging its liability for payment of license fee toDoT and paid Rs. 56.56 crores in FY 2020-21. All other statutory liabilities includingIncome Tax Service Tax VAT etc. are being timely paid.

Indian Railways & RailTel

Your company is actively carrying out various projects for Indian Railways. We haveprovided public Wi-Fi at 6050+ stations. This is arguably one of the largest integratedWi-Fi Networks of the world. To monetize this network we have launched paid Wi-Fiservices at all stations which has received good response. Given the lesser crowd atRailway stations during the pandemic the user count has been hit but we are sure thatonce Railway operations becomes normal this paid wi-fi scheme will add substantially toour revenue stream.

RailTel was entrusted with implementation of NIC e-office for Railway establishments ina phased manner to replace manual files with Digital Files. RailTel has completed work ofphase I and II. Phase III has been completed in June'21. RailTel had created 1.3 Lace-office users in 172 establishments of Indian Railways. NIC e-office has been a majorsaviour for railway officials during the lockdown as the platform helped them continuetheir file work remotely. The number of e-receipts has risen 14.4 times and e-filescreated risen to 9 times post March 2020 lockdown announcement.

RailTel is also implementing Hospital Management Information System (HMIS) at 125health facilities and 650 polyclinics of Indian Railways across India for improvedhospital administration and patient healthcare. HMIS is an integrated clinical informationsystem which aims to digitize the functioning of hospitals to provide faster and seamlessservice. RailTel has also developed and integrated m-Consultancy Teleconsultation appHMIS mobile app and Covid portal to help the health units provide better service. This hasbeen implemented at 154 Hospitals/Health units over NR ScR NER & ECR Zones.

RailTel HD Video Conferencing service is an end-to- end full high-definition videoconferencing service that gives users a virtual face-to-face meeting experience. Thisservice is extensively used by Indian Railways for holding online meetings of RailwayBoard Zonal & divisional set up inauguration events etc.

These Services have often served events for the Hon'ble Prime Minister of IndiaMinister of Railways Minister of Industry & Commerce as well.

This service also helped Railways maintain coordination and carry out crisis managementtremendously during nationwide lockdown. The service is also used by other Govtorganisations and PSUs.

RailTel is providing a number of Data Centre and Cloud Services such as managedhosting Disaster Recovery Co-location Cloud computing from its MeitY empaneled"RailCloud". It is also providing Value Added Services such as e-tendering/ eauction.

RailTel is in the process of providing the Content on Demand service topassengers in trains by preloaded multilingual content (Movies Music Videos GeneralEntertainment Lifestyle etc) on media servers installed in trains. The Content on Demandservice will not only improve overall passenger experience but at the same time willincrease the non-fare revenue through multiple monetization models. The CoD will also beavailable at all stations with Wi-Fi. RailTel has already partnered with a DigitalEntertainment Service Provider for this project.

Pilot implementation of CoD in nine Rajdhani rakes one AC suburban rake over WesternRailways and Chennai Express of Central Railway is underway.

Another ambitious project of Indian Railways being executed by RailTel is RailwayDisplay Network (RDN). RDN is an initiative to provide contextually rich and relevantinformation to Rail users along with public awareness messages & entertainment contentand use the latest digital technologies to unlock the true advertisement potential of thefootfalls in stations. RDN is planned to be built and operated on a self-sustainablemodel. Project is to be implemented at 2185 stations (all A1ABC & D categorystations).

RailTel is providing IP based Video Surveillance System at Indian Railway Stationsacross country and train coaches. This state-of-the-art surveillance system will havevideo analytics and facial recognition software to ensure proactive high-tech security atrailway stations. RailTel is also creating centralized monitoring Control centres in allRailway zonal/divisional Head Quarters which will notch up the surveillance activityensuring better security for the passengers and Railway properties. The target is toprovide the IP based Video Surveillance System at 6049 stations and 14000+coaches ofpremium trains and suburban EMU coaches.

Work has already been completed at 281 stations by RailTel in Phase I and 475 morestations will have this system within FY 21-22. RailTel has also provided CCTV at 54Stations for Migrant Specials on war footing during FY 2020-21.

The project of replacing old mechanical signalling equipment with state-of the-art electronicinterlocking system at 12 stations of Northern Railway is being carried out. Work atthree stations has already been completed and it is in progress at 09 other stations. Anew order has been received for 14 more stations and survey work has been started.

RailTel is also executing the project to design & develop application software fortaking feed from Civil Engineering Field Sensors available on various assets such as trackand bridges display of stored Drone Recording of track of IR and Video Camera Live Feedfrom various project sites for monitoring by higher officials.

RailWire - Retail Broadband Initiative

Our retail broadband service RailWire-which is a collaborative model in partnershipwith local entrepreneurs & local cable operators for providing access network hasdone exceptionally well in the past year. We have 4 lac RailWire subscribers which is 3.36times growth in just one year 4 months. This is suitable for providing rural connectivityat Gram Panchayat/ village levels as well as for connecting banks and other Governmentinstitutions.

Digital India

RailTel is a key contributor in a number of ambitious projects like Bharatnet(Erstwhile National Optical Fiber Network) National Knowledge Network USOF project inNorth East India. We have laid 25000 KM fiber and made 7766 Gram Panchayats (includingBHQ) Service Ready under Bharatnet (as on 31.3.2021).

Under NKN project RailTel has connected 732 Universities & Premier ResearchInstitutes such as IIMs & IITs etc.

PM WANI and Village Connectivity

PM WANI project of Govt of India is an exciting opportunity for RailTel to play ananchor role by continuous engagement with regulatory bodies and industry players toenhance evolving framework. RailTel has already registered itself as a Public Data OfficeAggregator(PDOA) for PM WANI programme.

RailTel also envisages to extend the Wi-Fi / broadband services to villages using itsPOPs at the already existing Wi-Fi stations.

Services to Other Sectors

Coal- RailTel is providing Virtual Private Network connectivity HD videoconferencing service e-office etc to Coal India and all its Subsidiaries. This is animportant sector for us as the sector is a very niche and gives lot of opportunities forbusiness growth.

Banks- We provide crucial Virtual Private Network connectivity and point to pointconnectivity to various public sector and private sector banks like State Bank of IndiaCentral Bank of India Bank of Baroda Kamr Vysya Bank etc.

Strategic Sector- We are providing connectivity to a number of defense andStrategic organizations for their critical applications and communication requirements.

Health- RailTel is also implementing Hospital Management Information System forKarnataka State Govt. on POC basis. It has also engaged with Ministry of Health fordeveloping application Cloud and Data Center Services.

Education Sector-

With pandemic hitting hard the regular schooling is adapting to digital platforms. Wesee an opportunity to grow and be a part of this massive change. We are implementing Weband AI based attendance system for schools in Assam. We are offering AI based Cloudsolution for Integrated Academic Management System Providing Smart Classroom solutionLearning Management Systems etc. which are a go to solution for education sector inpandemic weary world.

Innovative Digital Services for business continuity

We are making continuous endeavor to include more innovative products and serviceswhich can help our customers become more efficient and gain competitive advantageespecially in a post pandemic world.

We are focusing on providing a number of AI IoT ML based digital services tocustomers E-Governance solutions for Government departments/PSUs (AI based cloud solutionfor Contactless Real time identification of various beneficiaries of state & centralgovernments Contactless AI based tracking of regular meetings and capture financialtransactions of SHG groups Document Management System) and broadband services in Ruralareas. Besides our core services we provide consultancy services to various Govtdepartments/PSUs in their quest for transformation to cloud/digital application space.

Covid Pandemic Impact

It's been a year since Covid19 pandemic has started spreading like wild fire throughoutthe world changing the way we lead our lives and business completely. The ‘NewNormal' demands a digital ecosystem for sustainability of business compellingorganizations to adapt to technology enabled digital platforms at a rapid speed. Given ourservice portfolio and capability to design time relevant services we see an opportunityfor unprecedented growth.

There is a substantial demand growth for our services enabling remote working like NICe-office Video conferencing VPN etc. The demand for bandwidth has also increasedtremendously. Work from home and online school/college has raised the demand for ourRailWire broadband as well. There is going to be an upward trend in the demand of digitalservices and RailTel team is fully prepared to encash on the same.

Awards & Accolades-

CSR Times Award for best PSU in Women Empowerment Category for its CSR project SKOCHAward in Digital Economy category for e-office implementation and Express Computer DigitalTechnology sabha Excellence Award for Data centre speaks volume of RailTel's achievementin the past year

Corporate Governance

Your Company is also conscious of concept of corporate governance and is followingcorporate governance practices regularly. As a part of such practice RailTel has adoptedthe risk management policy. Various Committees such as Audit Committee CSR CommitteeNomination and Remuneration Committee Stakeholders Relationship Committe and RiskManagement Committee etc are already in place to effectuate the functioning of theCompany.

Corporate Social Responsibility

RailTel is dedicated to fostering equitable and sustainable economic development withthe help of its various Social Responsibility projects aiming at uplifting the underprivileged section of the society.

Your Company is currently running the RailTel Akansha Super-30 at Dehradun which offersfree boarding housing and coaching for IIT JEE and other premier engineering exams to 30students who are talented but belong to economically weaker backgrounds.

To contribute to better Menstrual Health of adolescent girls RailTel is runningMenstrual Health Management programme in 180 Government schools of 8 aspirationaldistricts of Uttar Pradesh by installing incinerator and napkin vending machines. Yourcompany has also contributed an amount of Rs. 33 Crore out of the CSR budget of FY2020-21 to the PM CARES Fund to support the Govt. of India in its crusade againstCOvID-19 pandemic.


I express my gratitude to our esteemed Shareholders my colleagues on the Board ofDirectors and to the Chairman & CEO Members and Officers of the Railway Board fortheir valuable support advice and co -operation. We are particularly grateful to theMinistry of Railways and other Ministries Regulators for their commitment inaccelerating the Company's growth.

I would like to extend my deepest appreciation for RailTel team and their valuablecontribution for a sustainable performance in the future. Powered by the talent of ourpeople and faith in the resilience of our business model we look forward to overcomingany challenges that may lie ahead.

(Puneet Chawla)
Chairman & Managing Director