It is indeed my privilege, to share with you the results of the financial year 2018-19. Your Company which started its journey almost 13 years back is growing continuously towards fulfillment of its objective of providing clean, environment friendly green fuel as an alternative to its customers in the domestic, commercial and industrial sectors.
MNGL is strengthening its roots in the existing authorized Geographical Area(GA) covering Pune and adjoining areas. Additionally, your company is on its way to expand CGD network in Nasik GA (Nasik, Dhule & part of Valsad), Sindhudurg GA in Maharashtra and Ramanagara GA in the state of Karnataka which were awarded by the Petroleum and Natural Gas Regulatory Board (PNGRB) under 9th CGD Bidding round. The continuous trust of customers and stakeholders in the abilities of MNGL has helped your company deliver greater results by achieving significant milestones during the year. We believe that our ever growing experience coupled with Company’s dynamic leadership, empowered and competent workforce, realistic business approach and strong promoter support enable the company to expand and grow its business.
India is among the fastest growing economies of the world with a GDP of $2.9 trillion in F.Y. 2018-19. GDP growth rate witnessed a cyclical movement as it reached an impressive milestone of 8.2% in the first quarter and drop down at to 5.8% in the fourth quarter. In the backdrop of such heightened economic activity, the demand for natural gas has increased significantly due to rapid growth in population, increase in urbanization and policy support. By 2025, Natural Gas sector is expected to make a significant contribution to the country’s energy mix. Much of the future growth of Natural Gas usage in domestic economy will play out in the City Gas Distribution (CGD) segment and the landscape of CGD industry is fast changing with coverage of a large number of GAs in various parts of the country. We, at MNGL, are strategically positioned to leverage new opportunities in the CGD sector.
The financial year 2018-19 was another year of robust growth in our performance. During the year, gross turnover grew by 37.20% to Rs.909.84 Crores from Rs.663.14 Crores in the previous year. Profit after Tax showed an increase of 34.94% from Rs.105.71 Crores in the previous year to Rs.142.65 Crores in FY 2018-19. The Company has continued to maintain its track record of dividend payment, and for FY 2018-19, Board of Directors has recommended 26.4% dividend i.e. Rs. 2.64 per share. Shareholders shall be
happy to know that the Comptroller & Auditor General of India has conveyed “NIL” report for fifth successive year which is a reflection of the accounting standards devoutly complied by your Company.
On the operational front, your Company augmented its infrastructure by having 67 CNG stations with total compression capacity of 11.01 lacs kg per day. As on March 31, 2019, the Company was catering to 2.22 lacs vehicles in Pune and around areas. During the year, the Company provided record number of 66,393 new PNG domestic connections, taking total number to more than 1.69 lacs. Total 45 new Commercial and Industrial consumers were added to increase total consumer base to 1,69,894. Your Company continues to witness steady growth in sales volume, backed by growing CNG and PNG distribution network. The overall sales volume increased by 19.77% as compared to the previous year.
MNGL believes that outstanding business performance requires outstanding HSE performance. We work relentlessly to ensure health and safety of our employees and contractors. 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. It is worth mentioning here that your Company has crossed 5.04 Million accident free man hours till 31st March 2019, as a result of various safety programs arranged by the company to increase the awareness about safety amongst our consumers and employees.
Besides expansion, your Company is also focused on customer needs and is continuously making efforts to improve its services. MNGL converted its bill payment mechanism on digital platform by introducing credit card payments and ATM at its CNG stations. Moreover, your Company is also planning to develop new and advance customer centric Mobile Application to provide user friendly experience to our customers in all domain. The Company has provided various options of digital payments through our website for the convenience of customers.
In compliance with CSR policy your Company actively participating in various CSR projects during F.Y.2019-20 in association with local NGOs & other Organizations such as Sponsoring the Step-Up Foundation, a registered NGO in Pune, to conduct awareness programs about adolescence related issues in 15 Schools in Pune City through their ‘We-Wake & We-Lead’ program, donated 2 Buses running on environment-friendly fuel (CNG) to Savitribai Phule Pune University (SPPU) for the convenience of the students, providing financial assistance to “Ishwerpuram”, a registered charitable society working to provide complete care, education and accommodation facilities to students belonging to lower strata of the society, to construct new Hostel for them, sponsored “Sassoon Hospital” in procuring the much needed 2 units of Ventilator Sets etc. Being a socially responsible corporate your company will continue to strengthen its CSR portfolio to create shared value.
Your Company has always given importance to its Human Capital and believes that the challenges of the future can be best met with competent and motivated Human Resources. With the current growing opportunities in CGD,
we had some impact on attrition and few employees left the company. However, at the same time, we have bridged the Gap by recruiting the additional manpower. The Company has consistently putting its efforts to mould the employee oriented policies for the benefit and welfare of its employees. In this regard, the Company has taken various initiatives such as periodic revision in remuneration, arranging specialized trainings for the employees etc. In order to encourage team work and to enhance interaction among employees, various extra-curricular activities such as sports, Foundation Day Celebration, Women’s Day celebration etc. are organized from time to time.
In consideration of all these aspects, we are confident about maintaining business momentum and delivering a strong performance in the coming years, with continuous expansion of our business in newly awarded GAs in state of Maharashtra and Karnataka and increasing consumer base.
I take this opportunity to place on record the appreciation for valuable contribution made by Smt. Vandana Chanana, Shri I.S. Rao, Shri E. S. Ranganathan, Shri A. M. Tambekar and Shri Rajiv Sikka during their tenure as Board Members. I would like to mention that it is a great pleasure for the company to get continuous valuable contribution in its growth from the Independent Directors, Shri Rajesh Pande & Shri Deepak Mukadam. On behalf of the Board and the Company as a whole, I would specially mention here as a token of recognition for the remarkable efforts put in by Shri Rajesh Pande, who was instrumental in recovering the delayed payment of about more than Rs.27 Crores from PMPML. I sincerely acknowledge the support extended by Promoters (GAIL & BPCL), along with Indraprastha Gas Limited & MIDC as other equity partners. I would like to thank Government of India, PNGRB, all departments of the Central and State governments, our valued Customers, all the authorities and agencies of PMC, PCMC Cantonment Boards, Regulators, Vendors, financial institutions, and other stake holders for their unstinted support and co-operation for our aspiration to expand clean and green environment.
I, along with my colleagues on the Board also record my profound appreciation to all employees for their untiring and exceptional contribution in shaping together the future of your company.
My special thanks to all the shareholders of MNGL for their confidence and trust reposed on us. I am sure, with all your support, the Company will continue to scale newer heights.