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LETTER FROM CHAIRMAN, IGL:
I am pleased to share with you that your Company continued its journey of sustained growth both in financial and physical numbers during the financial year 2012-13 despite a challenging business environment. During the year, Gross Turnover of Rs.3724 Crores and Profit After Tax (PAT) of Rs. 354 Crores increased by 33% and 16% respectively over the previous year of 2011-12. In line with its good performance, the Board of Directors has recommended higher dividend of 55% (Rs 5.50 per share) as against 50% (Rs. 5 per share) paid in the last year.
It is a matter of great satisfaction that your Company has sustained its leadership in the sector and has already established itself firmly as a pioneer in City Gas Distribution (CGD) business in the country. As on March 31, 2013, your Company was providing Compressed Natural Gas (CNG) to 6.5 Lakhs vehicles, Piped Natural Gas (PNG) to 3.9 Lakhs domestic households and 1382 Commercial & Industrial Customers and these numbers are constantly increasing. It is a sense of achievement for your Company that it was declared as winner in the category of Infrastructure Development at India Pride Awards, 2012-13.
The fast changing macro-economic scenario and regulatory framework create challenges for us to operate in an effective and socially responsible manner. The fluctuations in Forex rates and in International Crude prices have a direct impact on the cost of sourcing of gas by the Company. Assured supply of gas at an affordable price to customers is critical for our business and your Company is making continuous efforts in this direction.
In this emerging competitive environment your Company will continue its drive for growth both in NCT of Delhi and NCR. Your Company has drawn out plans to further consolidate its presence in Delhi & NCR by investing over Rs.400 Crores during the financial year 2013-14. Recently your Company has acquired 50% stake in Central UP Gas Limited (CUGL), a Company engaged in City gas Distribution business in the cities of Kanpur and Bareilly in Uttar Pradesh. Your Company is looking forward for such strategic business opportunities to mark its presence in other cities and strengthen its growth opportunities.
Your Company is having a customer centric approach and is committed for customer satisfaction. The Company is constantly making efforts to improve its services to the customers as "the pursuit of customer delight is a constant process ... It never ends." During the year, a major IT initiative was taken to improve customer services by upgrading the customer portal with enhanced features. Your Company has extended the customer services to commercial & industrial segment also through customer portal.
Your Company has put into motion a number of initiatives aimed at improved operational efficiencies, maximum utilization of resources and good Corporate Governance Practices by strengthening the system & procedures. The Company has already worked out plans for optimum utilization of Compression Capacity, reduction in Operation & Maintenance (O&M) cost, better inventory management and implementation of various cost control measures.
Your Company has always ensured to add value to its pool of human talent and fully committed to developing the potential of this resource as that really creates a win-win situation not only for the employees and the Company, but also for all the other stakeholders. The Company has taken various HR initiatives like formulation of various welfare schemes for the employees. There has been emphasis on employees training to enhance their competencies aimed at better organizational performance.
Your Company has always accorded top most priority to Fire and Safety related issues and maintained highest standards of Health, Safety and Environment (HSE). To keep up a good safety culture throughout the Company, continuous efforts have been made. Regular training is being imparted to the employees and contract staff at CNG Stations, DTC Drivers and consumers of CNG and PNG. Emergency Control Centres (ECC) are also established at strategic locations across Delhi & NCR and manned round the clock.
Your Company is fully conscious of its Corporate Social Responsibilities and has identified Health & Environment, Education and Care & Empowerment of underprivileged as thrust areas. Apart from other initiatives your Company is also sponsoring coaching for professional courses for meritorious students from economically backward sections of the society. A group accident insurance policy for all segments of CNG run public transport drivers including auto, taxi, bus and goods carriers, is being introduced by your Company under its CSR initiative to support their families.
I am grateful to you for your support and the trust bestowed upon us and look forward to the same in greater measures in the years ahead.
With Best Wishes,
(K. K. Gupta)