So one will be for deploying 4G. the other will be for the deploying KA VACI!. And both put toge ther, you're telling could be in lhe lune of rNR5,000 crorcs to rNR7,000 crorcs? Yes, that will be complete system of train collision avoidance system. Got it. That's fair and quite a good news. Just to understand a little bit more, you said it's a new entrant and it is still under the POC. Who are the competition here in the KA VACI I for us"/ It's the companies like Siemens? No. Right now, one is Mcdha. The other one is HBL NIFE. J\.nd th..: third one is Kcrncx. And G.G. Tronics is also another new entrant whose producl is also under testing. Okay . Got it. And the company you said is Quadrant FuturcTck. Is that name'! Yes, Quadrant FuturcTck. Quadr ant, Okay. I've got it. And they arc quite established and capable company? Yes. They have a good experience of working in railways sector. They are already working in this sector. Fair enou gh. Their produc ts are different though, but Yes. Tha t holistically answered my question very well there. Second on the telecom service. I think we were hopeful of doing doubl e digit 10%-12% kind of a revenue growth this year and we probabl y ended in a mid-s ingle digit. What's happening on the telecom side and what arc the challenges we arc looking al, and how should we sec this revenue in next year? Yes. Actually, if you are aware, I think -- number one, 5G could not get the kind of fanfare ii was launched. But I think telcos arc also struggling. So SG also could not make the numbers. That is one aspect of it. But tariffs arc also continuously under pressure. And demand, o f course, is there. But because of falling tariffs, we are not able to see that kind of grow th in terms o f revenue. But we ure finding -- we are trying to find new ways so that we can make ii more feasible and poss ible for us to make a double digit growth, at least I 0% of growth. So we have worked out some strnlcgies in this and we arc hopeful that we will be successf ul in laking the growth of telecom business to I 0% kind o f. Got it. The next is on the marg ins in the project business. This quarter, again , the EBIT n111rgin was on the lower end. You said that the older project, which had lower margin, was completed. Any particular reason for this quart er having a margin of only 2.4%'! See, if you sec the -- like I have been telling you earlier also, so I think dur ing - I remember I think it was half yearly meet or I think maybe subseq uent one, wherein I had been in forming Gen erated from eOffice by HARISH CHANDRA BATRA. GM/FINANCE/CO/ RCIL/HC. GM/ FINANCE/CO/RCIL. Corpo rate Office on 09/0 5/202 4 04:40 pm , File No. RC~-fli FIN(MISC)/ 2/2024-0 / o Addi.

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GM/ Finance/ CO/ RCIL (Comput er No. 42676)

Raiffe/ Corporation of India Limited May 03. 2024 ~

RAILTEL

Sanja i Kumar:

San_jesb ,Jain:

and sharing with you that so metimes we find an opportunity that the business area where we are entering, it is new area for us and we somet imes have to take aggressive calls. So few businesses which we were lo enter, like, for examp le, in education, we were Lo enter the educat ion sector in a bigger way. So we had to take some forward calls, some aggress ive calls. And that is the reason that Q4. this affected our margin. Otherwise, you can take this only incidental to quarter four. And ovcm ll. if you sec, we have been able to make it better number, if you see on a complete financial year. Got it. On this projec t, on the KA V ACH side, what is the expected margin that we arc working with in our projection? Will you be able to do a 5%? TI1is will not be possible for us to share because somet imes these are business secrets and because there' s a lot of competitio n and people might lake advantage ofit. Bui certainly, we will do our best because it is competition. lt is not domination. Dul Yes, 8% to 10% we expect that we shou ld be able to manage . Got it. But still, I don't want to really comment much upon it. fair enough, sir. Just one last. .. And then moreover, this all depends on the scope, the competition, because there arc many factors. You come to know in a particular tender that so metimes market intelligence you get, that so many bidders are interested, who are the part ies who are participating, what kind of jobs they already have on their hands. So there arc many factors. We decide accordingly. Tha t's correct. On the Edge data center, where are we now in terms of... I thought we have comp leted the tendering, right? Yes. So there's good news that we have onboa rded a partner and the partner has already started its survey . And th.is year, we are expecting that JO to 12 Edge data centers will be operational. And next year, we'll take a good number of data centers. So by the end of this year, we should be getting the same reflected in our numbers , maybe by quarter four. Yes. Okay. And what is the estimated revenue from that? 1 won't be able to comment it right now, because this is ultimately revenue share. But yes, this year, I won't be able lo say much abou t it. Maybe ... But at a full blow n, will this segment give us INRI00 crorcs of annual revenue? Yes, in the two years run , we can expect. Not right now. When it matur es, it is big enough, we shou ld be able to do I 00. So that at least is a target for us. Thank you, Sanjay sir. Thank s for patiently answering our question s. And best of luck for the coming quart ers. Generated from eOffice by HARISH CHANDRA BATRA. GM/F INANCE/CO/RC IL/HC. GM/F INANCE/CO/RCIL, Corporate Office on 09/05/2024 04: 40 pm File No. RC~"l)i FIN(MISC)/2/ 2024-0 / o Addi. 341164/202 4/0 .. \ ,'· GM1Finance1CO;RC IL GM/ Finan ce/CO / RCIL (Computer No. 42676) Rail Tel Corporation of India limit ed May 03, W 24 ~

RAILTEL

Moderator

Sa njesh Jain:

Thank you. The next question is from the line of Sanjesh Jain from ICICl Securities. Please go ahead. Yes, thanks for taking my question again. Sir, can you just share the annua l revenue for our sub­ segment, NLD. ILD. and ISP'/ So this year, let me, so let me try to give you the answer. Let me get the number. If you have a11y other questions in the meantime, I can segment them. Only qum1crly or you want annual? FY '24. FY '24, yes. So !Pl ifwe talk of, it is INR 238 crores. Okay. ISP, INR433 crorcs. And NLD was INR 59 1 crores. And what was the contribution o f ra ilway and non-railway in the project? In the project? Railway project overall is 17% of the tota l revenue coming from railway. But project-wise, I don' t have the exact break-up. Railway project is aro und INR266 crores out of 1302. So roughly, Yes, roughly 15%, 17%, I think. 17%. Yes. So railway was quite low in the projects this year. And that should ... And this includes the VSS projec t? I think YSS itself ... VSS project actually C0llid not be underta ken to the extent we expected. And that is also one reason that Q4 was afTected. Because there is some -- if you see the website o f the MeitY, so they have come out with new guidelines for procurement of cameras and security-related specifications have been given. So that is -- wc were already following that. So that bas affected slightly our supplies. And now those things arc getting settled. So we should be able to finish this project this year. I think by end of December, we will be closing this project. And that will be totally INR800 crores was what we were expecting , right? Yes, it is close to 800. So some of it is already executed to the part. Some part of it is already executed. And roughly close to INR600 crorcs is remaining, which we are expecting to close this year. Uot it, got it. I think •· and what 1s the Rail Wire i\ Rl'U and subscriber? Rail Wire ARPU this year, because of compet ition again, so we had to tweak our tariffs also. And because of U1ere's a lot of churning, new ISPs are also corning with very aggressive tariffs. Generated from eOffi ce by HARISH CHANDRA BATRA. GM/FINANCE/CO/ RCIL/ HC, GM/FINANCE/CO/RCIL, Corporat e Office on 09/05/2024 04: 40 pm File No. RS!J,--Jli. FIN(MISC)/2/2024 -0/o Addi. 341 279/ 2024/v~ \ 1 · GM/Finan ce/CO/RC IL GM;Finance/CO/RCIL (Computer No. 42676) Rai/1'el Corporat ion of India Limited May 03. 2024 ~

RAILTEL

So AR.PU is slightly lower. It is 5 IO for this financial year. /\ nd numbers are close to 1NR5. 75 lakhs. 5. 75 lakhs. These have not grown so much. But there is one good news in this. We have recently got an order frorn Government of Gujarat, where it is subsidy-based model. And we have to provide broadband connectivity to I lakh house holds in Gujarat in next one year. So we hope that this will certa inly give us boost and we can take the same model when we success fully execute this to ulhcr states also. And so how docs this work'' Customer does n't pay and Government pays for it. Govenunent will pay subsidy to us on each connection. We provide to the subscribers, to their homes. So lhe overall ARPU includin g the subsidy will be equival ent to INR500 or will it be lower than that? No, that will aga in, it will affect /\RPU of course because the plans will be generally targeting the rnral areas. So those plans may not be that heavy. But then consumption again would be not that much and that is another part of it. So because urban area generally consumption is more. So what is tbe AR.PU for this 100,000 new customers we are anticipating? ARPU should be somewhere around 200. Okay. Plans will be 400 kind of. Annual. We are yet lo launch il. We are working on the tariffs and all. But this is very rece nt order.So we are still wor king on the tariffs and we are free to fix the tariffs depending upon the target market. Only the gap will be filled by the government ? No, not gap. There is a fixed subsidy. Okay, it's a fixed subsidy. Because there is one time expenditu re to provide this broadband lo every home. So we all when we take a connection, we pro vide the modem. We have to lay some fiber and all that. So we have a partner who will be working with us and they will be doing all this activity. So we will be laying any fiber for this because this will be more? Generated from eOffice by HARISH CHANDRA BATRA, GM/FINANCE/CO/ RCIL/HC, GM/F tNANCE/CO/ RCtL. Corporat e Office on 09/05/202 4 06:20 pm File No. RC~1Ji FIN(MISC)/2 /2024-0/o Addi. 3411 64/2024/O '-i.\ 1 · G M/Financ e /CO;RC IL GM1Finance1C01RCIL (Computer No. 42676) Rui/Tel Cu1porutio11 uf!ndia Limited May 03, 2024 ~

RAILTEL

Sanje~h J11in

Moderator

Dhvani shah:

No, not really. Sec Gujarat. 13haratNct they already have laid a lot of fiber within the state of Gujarat. So that fiber will be available for us to use. That is the actually basic tenet of this complete design , the scheme of the government. And we will be sharing a part of revenue also lo government of Gujarat. And what is the capex expected for next year? Capex will be in the range of somewhere around INR250 crorcs. Okay, so INR200 crorcs lo INR250 crorcs? TNR250 cro res. Yes, INR 200 to INR 250 erorc, hut I think we will be able to make INR 250 crore. Okay, this is fur FY25. Yes mostly we will be spending on network expansion enhancing our and data center also. We haven't announced any dividend this time around while we have generated a good cas h now in FY24, will that be taken separately a board meeting for that or how shou ld one think abo ut it? Generally , we do this exercise at the lime of AGM. So we have been doing this every year al the time of AGM , so we will do certainly. We'll take it to the board and they'll take approva l of board and the11 we'll announce it. Got ii. That's clear. Thank you, sir, again. Thanks for taking all the questions and best of luck. Thank you. The next question is from the line of Dhvani Shah from Investec. Please go ahead. Thank you for taking my question. I just wanted to understand how should we look at telecom margins for the next year'? Telecom margins'? Yes. it will be 20% lo 22% in the range of 20 plus basically 22% and close to that to maintain the same. And on the unallocated assets , can you help us understand why is there such a big jump since last year? Sorry, there's a lot of noise in the background. Can you just exp lain why there has been an increase in the wiallocated assets? Come again . Why has there been such an increase in the unallocated asscL~ versus last year'/ Generated from eOHice by HARISH CHANDRA BATRA, GM/FINANCE/CO/RC IL/HC, GM/F INANCE/CO/RC IL. Corpor ate Office on 09/05/2024 04:40 pm File No. RC~~FIN(MISC)/2/2024-0/o Addi. 3411 64/2024/0 , \ 1 · GM/Finance/CO/RCIL GM/ Finance/CO; RCIL (Computer No. 42676 ) RailTel Corpora1io11 of India li111i1ed May 03. 2024 ~

RAILTEL

Dhvan i Shah: San_jai Kumar:

Sanj a i Kum ar:

Vishal l'criwal:

Unallocated assets? Yes. Give me some time we will answer to this. It is cash and bank balance. Okay, because the jump if you sec in the asset segment that's given is from almost rNR25,000 lakhs to INR I, 14,000 lakh as per given in the segment-wise asset and liability statement. Mr. Batra will be answer ing this question. He is GM Finance. Primarily the cash and bank balance and certain other assets are also there. He's ta lking of segmen tal. I think Dhwani ji he will find out the comp lete answer to your questio n. In the meant ime, if you have any other questions otherwise we will answer you r question. Yes. That's it. Thank you. The next question is from the line ofVi shal Periwal from lDBI Capital. Please go ahead. Yes, sir. Thanks for the opportunity . l think, sir, the previous participant I think the question was like there has been changes in certain - the amount has been moved from tclecom serv ices to unallocable assets. Even lbe project side, the line item in the segmental asset side it has seen an increase, but at a company leve l definitely the net working capital or wha t we derive it's not been major change. So, the query was what does movement ha~ been happening between the segments. So, that was just to clarify that? Thank you . Vishalji. Our finance team is just working on it. Sure. And, sir, a couple of maybe like reitera tion if I can ask. I think at a project segment level there has been an improvement in the margins . If you look at FY24 that is an annual year basis al a EBIT margin is 22% which was around 20% odd. So, I think though you have clarified, but can you say that like the margin pressure or probably like the pricing press ure which you also touched upon brieny in the call. So, can we say that is mostly gone and probab ly things are looking better in the last second half or the fourth quarter? Can you say based on what you're seeing on the ground, sir? No, actually, we talk of project business. So, many limes, as I told you earlier also that. .. Sir, this was regardi ng tclecom. Telco, I think. There we are seeing an improvement in margins? Telecom pricing pressure is yes. It is still there. It's going to be there. So, Indian telccom sector is certainly much different from worldwide, wor ld over. This has been a different story and in fact, all of us know that our tel cos are always under pressure. Generated from eOffice by HARISH CHANDRA BATRA. GM/FINANCE/CO/RC IL/HC. GM/F INANCE/CO/RC IL, Corporate Office on 09/05/2024 04:40 pm File No. RC~lli FIN(MISC) / 2/ 2024-0 / o Addi.

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RAILTEL

Vishal Periwa l:

San_jai Kumar:

In fact, Vodafone is struggling to come back. So, that pressure is going to be there. That is the story of Indian telecorn sector market that will remain. Right. right. Okay. And then, sir, in project segmen t, l think the order book continues lo remain strong and you're guiding, like, you know, touching 1NR2,000-odd crorcs. So, typically, when wc gt:! this order, can you share some name with whom do wc compe te to get this project's order? It depends . Sec. we arc working on different sectors. So, many times, they arc private sectors. like L&T or Airtel or Jio, Stcrlite. They arc, like, our compe titors when we are working on system integrator kind of projects. Sometimes, they are PS Us, our competitors, if the tender is mos tly invited. Sometimes, mostly invited by the state govemments among the PSUs. And even defense organizations are also inviting many times among the PS Us. So, this is what, like, Tata Commu nications, Airtel, they arc the, from private sector side Sify, ir you talk of telecom sector. And Airtel and Jio, they are in system integration also sometimes when it is specifica lly having a sizable component ofte lecom business also. So, they are our competitors. Okay. And then, this order book, how exactly arc we seeing in any target that you have given to the team, that the INR4,700-odd crores, how do you see this coming year? Execution will be pretty good. So, there will be dep letion, but what we are targeting in terms of inflow, any color? • On inflow of new order book, the order you arc talking ol'? Yes. Yes. So, we expect with the kind of tenders, including those from railways, we expect that it should be, we shou ld strive to get orders of around TNR4,000 crores. New orders. Okay . And this will also have an eleme nt of KAVACH also. ll will be part of it. Y cs. Of course. Of course. Okay. And U1en. U1is KA YACH order for the quadrant, is it already approved vendor by the railway? They are in the process of approval. Prototyp e has already been approved and the proof of POC testing is underway . Field trial is underway. And now, this is not a challenge. So, once prototype is approved , then field trials, they have lo tweak their soflware and maybe some hardwar e kind of devices. But now, ii is almost, so that is what we were waiting. We were in discussion with the quadrant for quite some time. And now, we have signed an MOU with them. So, mostly we will be bidding in the tenders with this product. Okay. And in this edge data center, which you clarified, so can you share who all our clientc le are? 1 think for whom we do this work. And again, like in India, any competitors also that you Generated from eOff ice by HARISH CHANDRA BATRA. GM1FtNANCE1C01RCtL/ HC, GM/F tNANCE/CO/RC IL, Corporate Office on 09/05/2024 04:40 pm File No. RC~1}£ FIN(MISC)/2/2024-0/o Addi. 3411 64/202 4/ 0 ~ \ 1 · GM/Finance/CO;RC IL GM;Finance/CO/RCIL (Computer No. 42676 ) Rai/Tel Corporation of India Limited May 03, 2024 ~

RAILTEL

Sanja i Kumar:

sec in this sector, in this seg ment, that from a sector point or view, if you can give some color, it will be helpful? Most ly, we will be, again, eye ing government customers, mostly because of most of the, many of the customers, they arc comfortabl e when the data cente r activity, data center operations arc managed hy in-house govern ment-owned entity, in-house team of governmen t-ow ned ent ity. And that is where wc arc. So, that is one. And second, many o fll1e appl ications, like video gaming applications, there the latency is a very important parameter. And the data center, the closer it is to the user, it gives you better performance. Aad similarly, these live events, kind of IPL matches, even these OTT platforms like I lutstar, and then Nctllix an<l many more, llwy are also, they arc looking fur best experience to their users. So, that as close as possib le, they are dose to the customers, subscribers, because the numbe r of users are also increasing. Every time they require a fatter pipe, if you are somewh ere away, and that introduces latency also. So, that is, these are the kind of prospective customers. One more thing I would like to share with the investors through your question , that recent ly we have won an order from Prasar Bharali, where we are developing an OT!', which is being actually based on the content provided by Doordars han. And it will be vc1y useful to the rural and remote areas. It wi ll he popular in Tier 3, Tier 4 towns, because of their taste, and it wi ll be kind of even targeting the linguistic areas , like statewide, tbey can target. So, that is a very good order , w hich we have, and we will he, we ~re very much confide nt, we arc very much i:xcited about this. So, that will also be one prospct:livc user of our Edge Data Center. Okay. Got it, sir. And then, this Gujarat work, you did brie fly mention, the subsidy will be given. The subsidy is on the capcx , which is more like a modem router. Then the customer, usually they have to take the plan and then they have· to pay for it. ls that a business, obviously? In a sense, let's say it is capex , but actually it is not directly capex. It is subscriber -based. So, individua ls, every individual subscriber we add, we get the subsidy. But then, on annual basis or monthl y arc onboarded, there is no subsidy. On a month ly basis, they get a ... No. There is no rccuning. There is nothing. Actually , generally , the challenge has been in laking such kind of services to the 11.1ral and remote areas, that one-ti me expenses are some times prohibitiv e. And the operators, they see commercia l ang le and they don't have an early ROI. And then, ultimately, these services arc nnt ava ilable lo tl10se folks, those masses. So, that is the idea. Okay . So, basica lly, the idea is like, the Railwi re where in the subscribe r base cou ld sec some bit or improvem ent with these kind of initiatives thal the government is taking and then RailTcl becomes a bencficiaiy . That's how one can read? Generated from eOffice by HARISH CHANDRA BATRA, GM/F INANCE/CO/RC IL/HC, GM/F INANCE/CO/RC IL. Corporate Office on 09/05/2024 04:40 pm File No. RC~l)li FIN(MISC) / 2/2024-O/ o Addi. 341164/202 4/O, \ lj' · GM1Fin a n ce1C O1RC IL

GM / Finance/CO / RCIL (Comput er No. 42676)

Rai/Tel Curpuratio11 of India Limited May 03, 2024 ~

RAILTEL

Sanjai Kum ar :

Sanjai Kum11r

Visl111l Periwnl

San_jai Kumar:

Moderator

Moderator

Yes. So, generally. actually, railways, RailTcl subsc riber base is mostly in rural areas. 13111 then, we were also facing this challenge that who will put this money, this one-Lime expenditure Lo take these services, these broad hand services to the home, So, sometimes, there are some affluent subscrihers in those areas, some SMEs in those areas. They Lake such services. llul then. puhlic in gcncrnl, generally, was nol very keen to start such services. So, now, with this kind of support from govern ment, it will be possible. And one more fact that the llharatncl project has also actually provided this kind of used fiber being laid in those states. And so, lhal will take us closer to the subscriber base. Okay. Good lo hear 1hi,. And maybe one last question. Overnll, 1 think at a company level, I mean, we have been guiding 20%-25% kind of revenue grow th. So, how do you sec this in l'Y25 for us? This is my last question. You arc talking of revenue guidance, revenue growt h gu idance'/ Yes. I think we arc done. With the same 30% kind of grow lh, we arc very much hopeful. We will conti nue with the same kind of grow th over lite ncxl year. Okay. Sure, sir. I'll come back in the queue for more, sir. Thank you very much. Thank you. Thank you. The next question is from the line of Raaj from A1jav Pa11ners. Please go ahead. Sir, please go ahead. Yes, Mr. Raj. Mr. Raj, may I request you to unmute your line and speak, please? The line for Mr. Raj has been dropped. The next question is from the line of Decpak Purswani from Svan lnvcstmcn l. Please go ahead. Yes. Sir, jusl wanted to unders tand abou t the data center business. lfyou can throw some light in terms of what wou ld be the megawatt capac ity we would be looking out to add ii up and what wou ld be the revenue mode l in this kind of business? So if you're talking about edge data center, then we are actually going to have a very sma ll edge data center at around I 00 locations and those will be somewhere around, I think if we put toget her comp lete capac ity, so it will be somew here arou nd, I think, 20. 20 mcgawa lts? No, 20 kilo walls for euch. 20 racks and 10 kilowults eac h. So it is 20 megawalts. Rough ly around 20 megawalts. A small 100, soil will be 0.2 megawatts in eac h locat ion. 0.2 megawatts. Generated from eOttice by HARISH CHANDRA BATRA, GM/F INANCE1C01RCIL/HC. GM/F INANCE/CO/RCIL Corporate Office on 09/05/2024 04:40 pm File No. RC~~FIN(MISC}/2/2 024-0 /o Addi. 3411 64/2024/0 , \ 1 · GM/Finance/CO/RCI L GM/ Financ e/C O/ RCIL (Computer No. 4267 6} Rai/Te/ Corporation of India Limited May 03, 2024 ~

RAILTEL

Moderator

Okay. And sir, how would be our revenue model in this? This would be a core location with any of the government agency or where we would be only getting the rental part or this would be a completely different model from the data center point of view? Yes. So this is going to be a difTere nt model in the sense that the investment is being done by our partn er and because of our network connectivity, because of our access to the governme nt and the trust government shows in a governmen t entity that kind of marketing we have already and then their own marketing capability. So this is a kind of combined efTort we will be making and this is a unique model, I think. I don't know whether such kind of model a lready exists . Okay. And any thoughts once this would be operat ional, what would be the revenue potentia l we arc looking at from this business and what would be the EBITDA margin we would be targeting for this business? EBITDJ\ margin, if we talk of, it will be in range of I 0% or so because this is on revenue sharing basis. Investment is being done by them and we will be h,iving our own marketi ng and sales teams available. So I suppose this will be in the range of somewhere around 10%. Okay. And what would be the revenue potential from this? Revenue, I would say this 20 megawatt complete once it is rolled out, then it should give us· around maybe close to somewhere around INRI 00 crores of revenue. Okay. Thank you. Thank s a lot, sir, for answering the question. I wish you all the best. Thank you. Thank you. Ladies and gent lemen, this was the last question. We would now conclude the call. On behalfof RailTel Corporation, that conclude s this conference. Thank you for joining us and you may now disconnect your line. Generated from eOff ice by HARISH CHANDRA BATRA, GM/F INANCE/CO/RCIL/HC. GM/F INANCE/CO/RC IL, Corporate Office on 09/05/2024 04:40 pm