Magellanic Cloud Limited announced that its wholly owned subsidiary, Provigil Surveillance Limited, has received a Letter of Acceptance (LoA) from Indian Railway Catering and Tourism Corporation Ltd (IRCTC) for a significant surveillance technology contract worth ₹2.25 crores.

Contract Details and Scope

The contract involves the development, deployment and testing of continuous live streaming portal and clip gathering with AI Analytics Services of CCTV cameras at authorized kitchen units. The project encompasses a real-time, AI-enabled CCTV live-streaming and analytics solution designed for monitoring IRCTC-authorized kitchen units through a centralized portal.

Project Objectives and Technology

The AI-driven surveillance solution is aimed at enhancing multiple operational aspects of IRCTC's catering operations:

• Hygiene compliance monitoring
• Improved governance and transparency
• Proactive detection of operational irregularities
• Real-time monitoring capabilities through centralized portal
• Advanced analytics for kitchen unit oversight

Management Commentary

Commenting on the development, Mr. Joseph Sudheer Reddy Thumma, Global CEO & Managing Director of Magellanic Cloud Limited, stated that "the deployment of an AI-driven live-streaming and analytics platform reflects the Company's advanced domain expertise in next-generation surveillance systems and its commitment to enabling higher standards of transparency, quality assurance, and operational oversight through technology."

Corporate Governance Compliance

The company has confirmed that none of the promoter, promoter group, or group companies have any interest in IRCTC, the entity that awarded the contract. Additionally, the order does not fall within the purview of related party transactions, ensuring compliance with regulatory requirements.

This contract win demonstrates Provigil Surveillance Limited's capabilities in delivering advanced surveillance technology solutions and reinforces Magellanic Cloud Limited's position in the AI-enabled security and monitoring sector.

Magellanic Cloud Limited has recently faced a significant stock price decline, prompting Managing Director Joseph Sudheer Reddy Thumma to issue a communication to shareholders. Despite the nearly 64% drop in stock value over the past fortnight, Thumma emphasized the company's strong business performance and growth trajectory.

Key Financial Highlights

In his address, Thumma highlighted several positive aspects of the company's recent performance:

CEO's Perspective on Stock Decline

Thumma attributed the sharp stock decline to a sentiment-driven correction in the market rather than any fundamental issues with the company. He stated, "Short-term price movements reflect perception, not performance. Real value is created through execution, innovation, discipline, and trust - and that is exactly what we continue to build."

Company Achievements and Strategy

The CEO also highlighted several strategic developments:

• Achieved CMMI certification, validating operational maturity and process excellence
• Formed strategic global partnerships with leading technology companies
• Continued focus on drone R&D and expanding IP
• Positioning for leadership in the evolving drone market where India is emerging as a global player

Message to Shareholders

Thumma reassured shareholders of the company's strong position, stating, "We are not failing. We are being misunderstood. And time will make that distinction clear." He emphasized the company's commitment to long-term value creation and innovation.

Outlook

While the stock price has seen a significant decline, Magellanic Cloud's management remains confident in the company's fundamentals and growth prospects. The focus on technological advancements, particularly in the drone sector, and the secured order pipeline suggest potential for future growth.

Investors and market observers will likely keep a close watch on Magellanic Cloud's performance in the coming quarters to see if the company's operational results align with management's optimistic outlook.

Note: Investors are advised to conduct their own research and consider seeking professional financial advice before making investment decisions.