Industry Structure & Development:
Macro-Economic Situation
A robust telecommunications infrastructure is now an essential service for delivering
high-speed connectivity to people, homes, offices and governments. The global movement
towards everything digital and proliferation of powerful mobile devices such as smart
phones, tablets and IoT, rollout of new 4G and 5G networks for mobile and fixed broadband
and increased penetration of highspeed, fiber-based home broadband is driving the global
demand for all-pervasive, higher capacity fiber optic networks based. The telecom and
internet service providers are investing significant capex to upgrade their optical
networks and this presents a robust growth opportunity for our industry. A combination of
factors such as, increased adoption of home broadband, high-speed mobile broadband,
bandwidth-intensive applications such as high-speed business Ethernet, cloud connectivity,
high-capacity wireless backhaul, and data center inter-connections are resulting in an
expansion of the optical network equipment market. The continuing global trend of
increased data consumption by consumers, enterprises and intelligent devices is a
favorable driver for our business. With internet becoming more ubiquitous and use of
high-bandwidth services such as video streaming, social networking and e- commerce
becoming commonplace, there is a dramatic increase in data traffic in telecom networks.
The global outbreak of COVID-19 and stringent social distancing restrictions are
accelerating this trend. As a result, telecom operators are increasing capital investments
in optical transmission and broadband access equipment to ensure that mobile and home
broadband services are delivered with requisite quality and in cost-effective manner.
While optical capital expenditure is growing in large parts of the globe, India and other
developing countries in SAARC, South East Asia, Africa and Americas are growing faster
than other geographies since developing countries have huge pent-up demand for optical
fiber and fiber-based equipment in the access and backhaul to serve an exponential growth
in highspeed data traffic driven by expansion of 4G networks while preparing for impending
5G rollouts, fiber-to-the-home (FTTH) and fixed wireless access (FWA) applications for
broadband access, and growing bandwidth consumption by consumers and businesses due to
preference for video-conferencing, video calling and virtualied events. India is expected
to have one of the highest compounded annual growth rate (CAGR) of optical capex in the
coming years and one of the highest proportion of optical capex to total telecom capex in
the world in the next few years. The recent pandemic caused by COVID-19, has accelerated
the need for high-bandwidth, reliable and secured networks, given the new trends such as
work-from-home, remote learning, telemedicine, entertainment, e-commerce, e-Governance
etc.
The demand for optical transmission will be driven by the following factors:
Mobile backhaul is defined as the transport of cell phone traffic between the cellular
base station and the mobile switching centre. In the case of 2G and 3G networks that were
dominated by voice and low-speed data services, cellular traffic was largely backhauled
over microwave radio but with the arrival of 4G and 5G networks that are dominated by
higher-speed data traffic, optical fiber based backhaul has become the norm. The
fiberisation trend is further accelerating with the advent of 5G due to a 10x increase in
backhaul capacity requirements and a 10x densification of cell towers, since 5G
base-stations will be placed much more closer than the 4G base stations. In India, less
than 30% of around 600,000 cell sites are currently fiberized (compared to 70-80% in
developed countries) which is expected to increase to 60% by 2023. Overall, India has
approximately 735 million mobile broadband subscribers today (source: TRAI statistics,
March 2021) but the rural subscription base is ~30% so there continues to be a latent
demand for higher speed 4G services, especially in smaller towns and rural areas.
Outlook: Company is evaluating various opportunities and suitable business
opportunities which improve the operations of the company.
Performance Review:
Discussion on Financial Performance with respect to Operational Performance:
1. Total Income: Nil
2. Share Capital:
The paid-up share capital as on 31st March, 2022 is Rs. 458,92,380. /-
3. Net Loss:
The Company’s operating Profit/loss of Rs. 20,01,000 during the year.
4. Earnings Per Share(EPS):
The Earning Per Share for the Financial Year 2021-22 is Rs. (0.44)per share
(Face Value: Rs.10/- each).
Your directors are putting continuous efforts to increase the performance of the
Company and are hopeful that the performance in coming year will overcome from the present
situation.
|
For and on behalf of the Board |
|
For AARV INFRATEL LIMITED |
|
Sd/- |
|
Bhasker K Bhatt |
| Date: 06th September, 2022 |
Chairman & Managing Director |
| Place: Hyderabad. |
(DIN: 09463033) |
+91-9892691696
