Dear Shareowners
My heartiest greetings to you all. It is my privilege to write to you and present the
Annual report of FY 2023-24.
I am deeply honoured and delighted to share that your Company in its journey of 25
years has achieved a number of milestones bringing national and international accolades to
it. It is a matter of pride for all of us that today IGL is a leading and premier City Gas
Distribution (CGD) Company of India.
Presently, IGL stands at a crucial stage in India's transformative energy landscape.
The nation's large population, coupled with a strong push towards sustainable energy have
ignited a surge in the demand for natural gas, especially through the City Gas
Distribution (CGD) networks. IGL's infrastructure, along with project execution
capabilities ensures safe, reliable and uninterrupted distribution of natural gas to its
growing customers.
Summary of Physical and Financial Performance
The financial year 2023-24 was another successful year for your Company. The Company
achieved record sales volume and profitability.
In FY 2023-24, the Company achieved sales volume of 8.43 million metric standard cubic
meters per day (MMSCMD), the highest ever in the history of the Company. Your Company
recorded Gross turnover of Rs.15,403 Crores and the highest Profit After Tax (PAT) of
Rs.1,748 Crores.
Your Company's presence has expanded to 11 Geographical Areas (GAs) in across 32 distri
cts i n 4 states. Your Company is catering more than 21% of demand of CGD sector.
During the year, the Company augmented its infrastructure by adding 90 new CNG stations
and the total number of CNG stations increased to 882 at the end of the fiscal year which
is approximately 13% of PAN India CNG stations. In the PNG segment, the Company added more
than 3.3 lacs new household connections besides increasing the Commercial and Industrial
customers base significantly.
The Company has robust infrastructure catering to around 19 Lacs CNG vehicles and more
than 27 lacs households. It has more than 10,500 Commercial and Industrial customers.
I am delighted to share that Care Ratings Ltd. has given AAA (Stable) credit rating
which shows our financial stability and commitment to fiscal responsibility.
Dividend
For the Financial year 2023-24, your Board of Directors has recommended final dividend
of 250% i.e. Rs.5/- per share which is over and above interim dividend of 200% i.e. Rs.4/-
per share paid during financial year 2023-24.
Technology
IGL has a customer centric approach and has been making continuous efforts to
strengthen its services by leveraging technology and adopting digital innovations. The
Company has added new features in its app - IGL Connect and has strengthened the Customer
Relationship Management (CRM Module) in SAP. Your company introduces prepaid card facility
for CNG customers and OTP and E-POD based bill delivery system for PNG customers. The
Company has been promoting digital payments by its customers and has provided a number of
gateways for such payments.
Your Company is the first in the country to commission 2400 SCMH and integrated
compressor, bring MRU, supply CNG to train-locomotive, to employ field mobility
application for end to end PNG domestic connection and to install prepaid meters.
There is a continuous endeavour on the part of the Company to provide best services to
its customers.
Safety Awareness
Health, Safety and Environment has always been the focus area of your Company. The
Company gives utmost priority to this area in all its operations. It is a constant
endeavour to maintain highest standards of safety and a number of measures are being taken
to ensure strict adherence to the same. Regular safety audits and trainings are given to
drivers, customers, employees etc. to ensure safety. The Company spread the message
through FM radio, print, digital platforms as well as social media to create awareness
about safety. Your Company received the prestigious safety innovation award from the
Institute of Engineers and the certificate of appreciation from the National Safety
Council in 2023. These recognitions show your Company's commitment to create a safe and
healthy work environment.
Human Resource
The Company gives due importance to its human resource and continuously work for
strengthening HR Policies and processes for welfare of its employees. During the year
2023-24, the Company revised the compensation of employees to make it more competitive and
aligned with industry practice. Your Company conducted various training programmes and
organised various sports activities for its employees. The Company maintained the
congenial working environment and good industrial relations.
Corporate Social Responsibility
IGL being a good corporate citizen is conscious about its responsibilities towards the
society. For IGL, CSR responsibility goes beyond legal obligations and the Company's CSR
expenditure exceeded the mandatory limit. During the year, the Company undertook various
CSR programmes that were focused on health, education, women & underprivileged
empowerment and skill development. As we move forward, we remain devoted to our pursuit of
creating a brighter, more inclusive future for all.
Way Forward
As we stand on the threshold of another transformative year, we are working towards
shaping a better future for our stakeholders. The Company is looking beyond gas and has
drawn a corporate strategy for its future growth. As part of its strategy, the Company is
considering proposals in renewal space. The Company has also plans to explore green
logistic business and set up LNG fuel stations. The Company is actively participating
under SATAT (Sustainable Alternative Towards Affordable Transportation) and CBG
synchronisation scheme to facilitate waste management and promote use of Compressed Bio
Gas (CBG). The Company is also considering acquisition of other CGD Companies to expand
its footprints in various parts of India. As part of backward integration, the Company has
set up a Joint Venture Company named as IGL Genesis Technologies Limited for meter
manufacturing. Commercial production of meters is expected from December
2024. These new areas of diversification and expansion in existing areas of operations
would add to the growth of the Company in future.
Net Zero Emission
Your Company gives due importance to ESG for sustainable growth of the Company and
firmly believes in integrating Environmental, Social and Governance (ESG) norms in its
value chain. The Company is continuously expanding its operations to provide eco-friendly
fuel to its customers and taking further steps to reduce carbon emissions in its direct or
indirect operations. The Company has taken steps for formulating Sustainability policy and
road map for net zero emissions.
Conclusion
Your Company is committed to best corporate governance practices by ensuring
transparency, high degree of disclosure, adequate control system and culture for
safeguarding the interest of all its stakeholders.
On behalf of the Board of Directors, I express sincere thanks to the Government of
India, State governments of Delhi, UP, Haryana and Rajasthan, Petroleum and Natural Gas
Regulatory Board, all the departments/ authorities of the Central and State governments,
our valued customers and all stakeholders in the value chain for their support to the
Company. I would also like to thank each and every employee of IGL for their hard work and
dedication.
Finally, I convey our deep sense of gratitude to all our shareholders. It is your
confidence and belief that has propelled us to new heights. Looking ahead, we are
confident to deliver more value to all stakeholders and contribute to a cleaner and
sustainable future for India.
Warm Regards,
R.K. Jain
Chairman