Ms. Pooja Aggarwal
Non-Executive Director, Chairperson
Dear Unitholders,
I am pleased to present the Annual Report of Data Infrastructure Trust
("Data InvIT") for FY 2023-24. As we reflect on the past year we are reminded of
the significant milestones in our growth and innovation within the telecommunications
infrastructure sector. Our unwavering commitment to enhancing connectivity and driving
sustainable progress remains steadfast, guiding us through the dynamic and ever-evolving
landscape in which we operate.
In 2023, the global economy demonstrated remarkable resilience amidst
considerable monetary tightening and persistent policy uncertainties. Major developed and
developing nations expansion exceeded initial economic forecasts even as they navigated
through restrained growth, stringent financial liquidity, and diminishing fiscal
flexibility. Central banks worldwide took bold steps to counter high inflation, raising
interest rates dramatically after a decade of low borrowing costs. Adding to the
complexity were ongoing geopolitical tensions, climate change challenges, and structural
shifts within the global economy. These dynamics highlighted the critical need for
economies to stay agile and focused on financial stability. The takeaway for us at Data
Infrastructure Trust from global uncertainties in the last few years is to stay agile,
always keeping an eye on our bottom line.
India continues to stand out as the fastest-growing economy among G20
nations. The economy experienced a significant upswing, achieving its fastest growth rate
in one and a half years, driven by robust manufacturing and construction activities. This
culminated in an impressive 8.4% growth rate, surpassing economists' expectations of 6.6%.
As inflation in India cooled down from a high of ~7.5% to ~5% during FY 2023-24, RBI
maintained its policy rates. RBI kept the repo rate unchanged at 6.5% for 14 months and
continues with the 'withdrawal of accommodation' stance. Further, the foreign exchange
rate (INR/USD) remained quite stable within a range of INR 81.80 to 83.40 with favourable
INR equity markets and bond inflows.
Over the past few years, the Indian Government's policies,
hand-in-hand with strong consumer demand, have resulted in the rapid growth of the Indian
telecom sector. In line with the Government's vision of a Digital India, Data InvIT
is working to provide a strong platform to support the growth of the nation's digital
economy. The past year witnessed the rollout of 5G in India, one of the fastest in the
world. Telecom companies, Reliance Jio and Bharti Airtel are well on the path to achieving
the target of pan-India coverage by mid-2024. Vodafone Idea and BSNL are yet to launch 5G
services. This provides an opportunity for tower companies to solicit new business by
sharing sites.
At the heart of our achievements is Summit Digitel, a cornerstone of
our operations and the largest asset in our portfolio. During the year, 17,894 macro
towers were added to its portfolio. It has been consistently delivering high uptime of
99.97% across its expansive network of 1,74,451 towers as of March 31, 2024. The company
has been instrumental in providing reliable and high-quality infrastructure that meets the
evolving needs of Mobile Network Operators (MNOs). Our strategic tower locations and
superior backhaul connectivity ensure exceptional uptime and reliability, solidifying our
leadership in the market. Data InvIT's presence stretches across India and is not
limited just to major hubs, aligning with the growth levers for the country. We are proud
to be a part of India's growth story.
Equally impressive is the progress made by our other asset, Crest
Digitel. With significant advancements in the In-Building Solutions (IBS) and Small Cell
segments, Crest Digitel has demonstrated its remarkable ability to adapt and thrive in a
rapidly changing environment.
Our focus on operational excellence, driven by automation initiatives
and a strong customer-centric approach, has resulted in substantial revenue growth and
improved EBITDA.
Our unwavering commitment to Health, Safety, Security, and Environment
(HSSE) remains a fundamental pillar of our operations. Summit Digitel's impressive safety
record, with a Lost Time Injury Frequency Rate (LTIFR) of 0.0398, reflects a remarkable
59% improvement from the previous year. Crest Digitel has also maintained a "Zero
Harm" workplace, operating for 558 consecutive days without serious accidents. Our
Environmental, Social, and Governance (ESG) initiatives are deeply embedded in our
strategy. Our best-in-class HSSE practices, voluntary adoption of SEBI's Business
Responsibility and Sustainability Reporting (BRSR) framework and commitment to carbon
neutrality are testaments to our dedication towards ethical governance and sustainability.
We continue to closely monitor the new regulatory changes introduced by
SEBI to improve corporate governance standards, transparency, standardization among
InvITs, and ease of doing business. We are geared up to ensure adherence to these
compliances. The future holds exciting opportunities, particularly with the rapid
deployment of 5G technology. Projections indicate a surge in 5G subscribers to 860 million
by 2029, representing 68% of total mobile subscriptions in India. This trend aligns with
our vision of expanding infrastructure capabilities and fostering robust partnerships.
In January 2024, Data InvIT approved the acquisition of 100% interest
in American Tower Corporation's Indian tower business entity, ATC Telecom
Infrastructure, for an enterprise value of Rs165 billion (~US $ 2 billion). The Trust
signed a binding agreement, and the completion of the acquisition will be subject to the
approval of unitholders, various regulatory approvals, and other pre-closing terms.
This acquisition will significantly enhance our existing capabilities
and open new avenues for growth, enabling us to offer a comprehensive range of services to
customers, ensuring seamless connectivity and robust infrastructure solutions across
India.
Our commitment to innovation, sustainability and operational excellence
will drive our future success. By transforming connections and inspiring dreams, we aim to
deliver exceptional value to our stakeholders and contribute significantly to India's
digital transformation.
We take this opportunity to express our sincere appreciation to the
Board of Directors, Management, employees across companies, customers and partners, and
our unitholders. We are committed to creating long-term sustainable value for all our
stakeholders. Thank you for your unwavering support and belief in our vision.
Warm regards, Pooja Aggarwal