It is indeed a great privilege for me to present the report of the performance of your company for the year 2016-17. Since inception, Maharashtra Natural Gas Limited (MNGL) has grown leaps and bounds registering impeccable growth from year to year. Today MNGL had transformed the lives of ‘Punekars’ who have immensely benefitted by the cheaper and clean fuel over the past decade.
It gives me great pleasure to share with you the 11th Annual Report for the year ended 31st March 2017.
Your Company continues to witness steady growth in sales volume, backed by growing CNG and PNG distribution network. The overall sales volume increased by 5.4% as compared to the previous year, which is a good growth considering the sluggish global and domestic macroeconomic growth. The net profit after tax (PAT) marginally increased and is at 76.56 Crores as compared to Rs. 75.66 Crores in the previous year. The PAT remains stagnant due to higher provisioning for depreciation on capitalization of more assets worth more than Rs.288 Crores during the year. Your Board has recommended 25% of the profit as a dividend on the equity shares of the Company which works out to 19.14% on each equity share of Rs.10 paid up i.e. Rs. 1.92 per share (including Rs. 1.039 paid as interim dividend in December 2017).
Your company is continuously expanding its network in both the CNG and PNG segments. We have added 6 new CNG stations during the year. As on 31st March 2017, your Company is operating with 42 CNG stations in its allotted Geography.
We have strengthened our marketing activities for PNG, your Company has provided PNG connection to around 50,851 domestic customers till 31st Mar’2017 including addition of 20,000 customers during the financial year 2016-17 and continued to increase greater coverage for domestic customer across Pune.
The company is constantly expanding/exploring new opportunities in the area of Industrial and commercial segments which can contribute towards enhancing shareholders value and meet emerging customers need. In the coming years, MNGL plans to invest heavily in infrastructure to support the growing PNG and CNG demand in and around Pune. MNGL continue to support the initiatives taken by Ministry of Petroleum & Natural Gas to promote economical, clean, and safe Piped Natural Gas for cooking and CNG for the transport sector.
The steady growth of your Company has been the result of strong all round performance by the dedicated force of our employees, vendors & contractors along with the excellent support received from State and local administrations.
Our employees are well taken care by various welfare schemes and Human Resources initiatives. During the last financial year, the employees were beneficiary to a large scale pay revision which put them on par with their peers in the Industry. Your Company support its employees in their career progression and provide trainings and updation programmes for building a long-lasting and faithful career. The Company had initiated several good initiatives in its HR practices & policies during the previous year.
MNGL remains committed for ensuring safety of all employees and contractors at our all sites. Safety and Health of its people is of paramount importance for your Company and these attributes are embedded in the core organizational values of your Company. Employees and Contract Workers in your Company are strongly encouraged to adopt safe working culture and behavior to ensure effective implementation of the HSE Policy. Your Company identifies all the Health, Safety and Environment hazards, evaluates the associated risks and manages these through effective and appropriate control programs and deployment of latest technology
Upgradation of technology and digitization was the main focus of the company during previous year, especially after demonetization the Company had taken many steps to shift its bill payment mechanism on digital platform.
Your Company is renowned as one of the most socially responsible corporates in the City of Pune. Keeping with its image it had initiated several CSR projects with the help of local NGOs & other Organizations mainly by providing employment by enhancing vocational skills to poor and needy through National Yuva Co-op Society Ltd. Secondly, organized health check camps for autorickshaw drivers in Pune city through Hind Shakti Social Foundation. Also, donated ebos lens to B J Medical College and Sassoon Hospital which is a vital tool for conducting retina surgery. Conducted football clinics through Nurturing Excellence in Sports Trust to young women to inculcate spirit of gender equality among aspiring young footballers from the rural areas of Pune. And last but not the least, installation of pollution monitoring devices through Science and Technology Park, as an environmental sustainability initiative.
On behalf of Board of Directors, I take this opportunity to place on record the appreciation for valuable contribution made by present and past Directors and each employee of the Company. I sincerely acknowledge the support extended by Promoters (GAIL & BPCL). I also acknowledge the support provided by Indraprastha Gas Limited & MIDC. I would also like to thank Ministry of Petroleum & Natural Gas (MoPNG), Petroleum and Natural Gas Regulatory Board (PNGRB), Government of Maharashtra, both Pune and Pimpri Chinchwad Mahanagar Palika and Cantonments Boards for their continued co-operation and support.
My special thanks to all the shareholders of MNGL for their confidence and trust reposed in us. I am sure with all your support the Company will continue to scale newer heights which hitherto have not been reached.