It gives me great pleasure to share with you that your Company has performed wellduring financial year 2015-16 and has been conferred City Gas Distribution - Company ofthe year 2015 award by Petroleum Federation of India (PETROFED). The year has beenwitness to many major events which have had divergent impact on your Company'sperformance. The global macroeconomic growth continues to remain sluggish. The crude oilprices continued its downward trend recovering only after touching a low of USD 26/barrelin February 2016. This has led to a growing competition from alternate fuels in commercial& industrial segments of the Company. However the government's decision to place CityGas Distribution (CGD) companies on the priority list for allocation of low cost domesticgas for transport and PNG - domestic has been a game changer. This gives an advantage tothe CGD companies in competition with alternate fuels and would also increase thepreference for CNG vehicles.
Your Company continues to witness steady growth in sales volume backed by a growingCNG and PNG distribution network. During the year the overall sales volume increased by4.4% as compared to the previous year. However due to the lower natural gas input costthe realization has been lower leading to a near flat gross sales of Rs. 4052.14 croresfor the year FY16 as against Rs.4048.58 crores in FY15. The net profit after tax (PAT)decreased by 4.9% to Rs.416.20 crores in FY16 as compared to Rs.437.73 crores in theprevious year. However the Consolidated PAT during FY 2015-16 is Rs. 464.13 croresagainst Rs. 448.13 crores in the previous year. Your Board has recommended a dividendof 60% i.e. Rs. 6.00 per share as paid during the last year.
Our decision to acquire 50% stake in other City Gas Distribution Companies namelyCentral UP Gas Ltd. (CUGL) and Maharashtra Natural Gas Limited (MNGL) has proved to beright with both businesses together contributing Rs. 53.65 crores to your Company'sconsolidated profit. Your Company continues to look for better opportunities to expand itsnetwork both by the organic as well as the inorganic routes. Your Company participated inthe sixth round of PNGRB bidding and has received letter of intent from PNGRB for grantof authorization for development of CGD network in the Geographical Area of Rewari inHaryana. We are also participating in the seventh round of bidding organized by PNGRB.
Your Company is continuously expanding its network in both the CNG and PNG segments. Weadded 16 additional CNG facilities during financial year 2015-16 and 78 new CNG facilitiesduring the Quarter April to June 2016 at the retail outlets of Oil Marketing Companies inDelhi and the NCR districts of Ghaziabad and Gautam Budh Nagar. This would furtherincrease the comfort of refueling CNG and enhancing the preference for CNG vehicles.During the year we have strengthened our marketing activities for PNG. Our team engageswith builders at a very early stage of their construction encouraging them to incorporatea PNG network in their construction plan. The initiative would give further boost to salesvolume in PNG segment.
The steady growth of your Company has been driven by the strong and motivated force ofour employees. Our employees are well taken care of by various welfare Human Resourcepolicies. We support our employees by formulating career development and progression plansfor them. Various engagements related to employees are systematically addressed withformulated policies such as Promotion Policy Recruitment Policy through CampusInterviews Performance Management System Compensation packages etc. We also worktowards enhancing the skills of our employees by providing various training programs. YourCompany through its Naya Prayas' scheme fosters the culture of innovationby encouraging employees to present new ideas in their respective domains. This gives thema sense of ownership and also enables them to actively participate in your Company'sgrowth. We always believe in team work and towards this we have inter departmental sportsactivities encourage participation in the marathon events quiz competition etc.
Safety is always on top of our operations in IGL. Your Company also lays huge emphasison the safety of all its employees and stakeholders associated in the daily operations.During the year our safety and security measures were appreciated and we were awardedprestigious safety awards/appreciation certificates viz. Green Tech Safety Award (Goldcategory) Safety Innovation Award by Institute of Engineers and Certificate ofAppreciation from National Safety Council to recognize the excellence in the field ofFire & Safety management. Regular safety trainings are being conducted to increase theawareness.
Upgradation of technology and improvement in the field of Information Technologydigitalization is always on our radar. Your Company is also leveraging the digitalizationdrive to make its services more user friendly further increasing customer preference.During the year we have upgraded our SAP system from SAP R/3 functionalities to SAP ECC6.0 EHP 7.0. We have also implemented new modules to improvise certain areas pertaining tocustomer satisfaction like enhanced customer relationship management prompt and agilecustomer complaints handling enhanced customer connect through multiple channels viz.Mobile E-mail web etc.
Cognizant of our social responsibility we undertake many CSR activities. Through ourcomprehensive health management programme IGL Swasth Saarthi' we organize Healthcheckup camps and Non Communicable Diseases (NCD) camps at various CNG stations for theauto and taxi drivers. We also carry out training programmes for taxi and auto drivers onGender Sensitization and Skill Management. Also through our Skill Development programmesfor unemployed youth we provide technical oriented quality training in the fields of gasplumbing and welding. Your Company has also provided a group accident insurance cover to3.25 lakh drivers of CNG run public transport under IGL Suraksha Yojna'. We havealso actively participated in the government's ambitious project Swachh BharatAbhiyaan' by developing new public toilet complexes and upgrading toilet facilities inmunicipal areas and government run schools in association with local bodies.
To further enhance the scope of our CNG business and address the concerns of thegrowing air pollution we have collaborated with a renowned market player to introduceretrofittment of CNG kits in the 2-wheelers. Recently the Company has launched thepilot project of installation of CNG kits in two wheelers. This would open new avenuesof growth.
On behalf of the Board of Directors I take this opportunity to thank the Government ofIndia Petroleum and Natural Gas Regulatory Board and all departments of the Central andState governments our valued Customers all the authorities and agencies for theirunstinted support to your Company.
I along with my colleagues on the Board would also like to thank each and everyemployee of IGL for all the hard work put in by them.
Finally I would like to thank each one of you from IGL's family of Shareowners forthe confidence and trust reposed in us. With your support and blessings I am confidentthat we can take the Company to greater heights in the days to come. I convey myappreciation and thankfulness to my colleagues on the Board for their valuablecontribution in strengthening the Company.