I am pleased to present your Company's yearly performance review for the year 2016-17.We successfully completed the IPO of the company in July 2016. I record my sincere thanksand appreciation to all investors who participated in our IPO and have stood by us withtheir investments in MGL.
We had a strong year in FY 2017 marked by a dividend increase growth in earnings andhigher customer acquisitions. Our profit has grown by 26.5% and we reported volume growthof 5.7% during the year. Our results were driven by several factors including operationalefficiencies growth in number of customers and subdued oil prices. In addition our costcompetitive and reliable gas sourcing arrangement and robust project delivery have helpedestablish extensive network increasing our ability to reach more customers in ourexisting areas.
Building on the strong foundation we are confident to pursue the opportunities thatawait us. We believe that ability to recognise the right opportunity and deploy our talentand resources quickly - will allow us enhance our growth and reach.
We have successfully commenced work on building infrastructure in the Raigad district.Furthermore to increase the penetration in transport and domestic sector we have tilldate set up 203 CNG stations and have reached 0.95 mn homes.
The penetration of CNG and domestic PNG is still low but increasing in Mumbai ThaneUrban and adjoining municipalities. This provides us with immense opportunity to grow inour existing areas.
Furthermore the government now allocates domestic natural gas upto 110% demand of CNGand domestic PNG. This gives us the assured availability and cost advantage against othercompeting fuels such as petrol diesel and high speed diesel paving the way for volumegrowth in future.
In addition the Central and State Government have been promoting the use of naturalgas by maintaining lower tax rates compared to alternate fuels. With the CentralGovernment gradually phasing out LPG subsidy substitution to PNG is only set to increase.The government has also mandated the conversion of all app based aggregators' taxis toclean fuel which will boost demand manifold. The app based taxis and aggregators havebeen given a 12 month time schedule to convert from alternate fuels to clean fuels likeCNG.
We expect our growth outlook to be robust. Strong untapped demand potential in Mumbaicompetitiveness of natural gas versus alternate fuels and the infrastructure rollout inRaigad area will continue to augment growth.
With priority allocation of Natural Gas through administered price mechanism (APM) toCGD industry by MoPNG we expect our margins to remain healthy going forward. We willcontinue to deliver a strong financial profile with robust free cash flows and soundreturns.
At Mahanagar Gas we remain committed to the needs of environment friendly cooking andtransport fuel. Our future priorities remain embedded in expanding our network to reachall our customer segments. We are making investments in growing our network to ensureaccess to clean and low- cost fuel.
Employees play a big part in success of any Company. I would like to thank allemployees of MGL for their continued support and commitment to grow this Company.
It was an honor to take charge as the Chairman of Mahanagar Gas Limited from myillustrious predecessors whose contribution in the success of the Company isinspirational.
On behalf of the Board of Directors and the entire management team we would like tothank you for your trust as we continue our journey to be amongst top-performing CGDCompany. We remain committed and focused on creating long-term shareholder value whiledemonstrating leadership in safety and environmental stewardship in all aspects of ourbusiness.