Your Company believes in benefitting communities and protecting the environment thatwill ultimately determine the sustainability of continued progress.
Chairman & Managing Director
Global events that unfolded during the previous year have the potential to alter thestructural landscape of the energy sector and by all standards the year gone by has beena challenging one for energy and commodity sectors which witnessed extreme volatility inprices. Adding to it as COVID-19 restrictions around much of the world are relaxed andeconomic activity recovers energy consumption is expanding sharply putting availableenergy supplies under strain and highlighting fragilities in the system. Your Company hassuccessfully steered its course during this demanding period emerging only stronger andresilient.
Unprecedented growth in times of global uncertainty and turmoil
Despite the global uncertainty and testing times your Company has yet again surpassedits previous records and clocked a 62% increase in Revenue from Operations to Rs. 91646crore in FY22 as against
Rs. 56738 crore in FY21 Profit Before Tax (PBT) increased by 113% to Rs. 13590 crorein FY 22 as against Rs. 6386 crore in FY21. The Profit After Tax (PAT) increased by 112%to Rs. 10364 crore in FY22 as against Rs. 4890 crore in FY21 mainly on account ofincreased gas marketing and transmission volume better gas marketing spread and higherproduct prices. Your Company has exceeded the highest ever Revenue PBT and PAT achievedin any of the previous financial years.
Your Company has been working tirelessly to strengthen its core business and today ownsand operates about 14500 km of trunk natural gas pipeline representing nearly two-thirdof the countrys existing network. Work is progressing at a good pace on constructionof nearly 5000 km of additional natural gas pipelines which is expected to bolstertransmission quantities once completed and provide extensive geographical reach within thecountry. Your Company is also actively scouting additional gas sourcing opportunities toserve its clientele both existing and new accretions. To stimulate and fortify corebusiness in particular your Company incurred a Capex of Rs. 7738 crore mainly onPipelines Petrochemicals and Equity to JVs. You will also be delighted to know that yourCompany has acquired 26% stake from ILF&S in ONGC Tripura Power Company. Thisacquisition would encourage synergy and enable GAIL to stronghold its presence in NorthEast region of the country.
Your Company is also aware of the transformational changes happening in the globalenergy sector and has been taking initiatives to get a foothold in such space. It is myhonor to announce that your Company has in line with the National Hydrogen Missioncommenced Indias first-of-its-kind project of mixing hydrogen into natural gassystem at Indore Madhya Pradesh. The hydrogen blended natural gas is being supplied toAavantika Gas Limited one of GAILs Joint Venture (JV) Company with HPCL operatingin Indore. This project marks the stepping stone of Indias journey towards hydrogenbased and carbon neutral future. The grey hydrogen would subsequently be replaced by greenhydrogen. Your Company has always been committed to the growth of a gas-based economy inIndia and to
Indias vision of a greener and a cleaner environment. As our country is movingforward with ambitious goal of achieving a carbon-neutral and self-reliant future thisproject is a significant step in that direction.
Growth and returns go hand in hand
The support of our shareholder has been consistently rewarded through regular dividendsand also buyback of shares at premium. Your Company takes pride in being a consistentdividend-paying Company. The Board of Directors of your Company had approved payment oftwo interim dividends during the financial year 1st and 2nd InterimDividend @ 40% and 50% respectively on equity share of
` 10 each (Rs. 4.00 and Rs. 5.00 per equity share each) amounting to
Rs. 3996.35 crore on the paid-up equity share capital of the Company. The Board ofDirectors of your Company has also recommended the payment of Final Dividend @ 10% (Rs.1/- per equity share) for the FY 2021-22 on the paid-up equity share capital of theCompany.
During FY 2021-22 your Company made Buyback of 56985463 (Five Crore Sixty Nine LakhEighty Five Thousand Four Hundred And Sixty Three) fully paid-up equity shares of facevalue of Rs. 10 each (representing 1.28 % of the total number of fully paid-up equityshares) at a price of Rs. 190 (Rupees One Hundred Ninety Only) per equity share payable incash for an aggregate consideration of
Rs. 10827237970 (Rupees One Thousand Eighty Two Crore Seventy Two Lakh Thirty SevenThousand Nine Hundred and Seventy only) excluding taxes. Buyback offer was successful andoversubscribed by 9.04 times. Total number of Shares tendered were 51.52 crore against5.69 crore shares offered. The paid-up equity share capital of the Company thus reducedfrom Rs. 4440.39 crore to Rs. 4383.40 crore.
Endeavors for the collective good
Your Company believes in benefitting communities and protecting the environment thatwill ultimately determine the sustainability of continued progress
Your Company with a turnover over US $ 12 billion is Indias largest natural gascompany and ranked as the top gas utility in Asia. But GAIL is more than just a gascompany. As a conscious corporate citizen the organization believes that it has a socialpurpose. The rigor and strategic thought that drives GAIL to be consistently ranked amongthe top gas utilities in the world also drives its CSR initiatives. GAILs mottostatement Energizing Possibilities is also a reflection of the hopesaspirations and dreams of the many beneficiaries of the CSR initiatives. Your Company isat the forefront of countless welfare projects that further its CSR objectives namelythrough ventures like GAIL Utkarsh-which provides support for specialized residentialcoaching for Engineering/ Medical entrance exams GAIL Vidya- which provides supporttowards promoting education to underprivileged girl students from rural and semi-urbanlocalities Project Arogya- Health Care facilities through operation of Mobile MedicalUnits in various states etc. The Company is always dedicated towards CSR activities andhas spent more than the prescribed CSR budget in last three financial years in a widearray of fields including health education environment and fitness.
Onwards and upwards
Your Company in a first-of-its-kind endeavor in the country plans to enter intodistributed LNG production with the vision to cater to the demand from off-grid locationsand the transport sector. With these goals in mind your Company has placed an order fortwo small-scale liquefaction skids capable of producing LNG on a pilot basis. Liquefactionwill be achieved through proprietary technology-based mobile liquefaction skids. This inturn shall help in the distribution of natural gas through liquefaction in new citiesareas liquefaction of gas at isolated fields and will support setting up of LNG fuelingstations and bunkering. It will be the first-of-its-kind in the country to introduceportable and scalable liquefaction units. Further your company is also under discussionfor manufacturing liquefaction skids in India.
The future is green
With its existing LNG portfolio of over 14 MMTPA and diversity in supply sources andprice indices GAIL is well poised to cater to the needs of its customers. Whileadditional gas sourcing opportunities are being scouted to further consolidate the gasportfolio and strengthen the core business so as to actively contribute towards thenational goal of a gas-based economy your Company has also embarked uponalternate energies like green hydrogen renewables and bio-fuels projects which are ofnational importance and would likely provide a transition to the future.
In line with Government of Indias National Hydrogen Energy Missionyour Company is setting up a Green Hydrogen Production unit with a capacity of 4.3 Ton perday at Vijaipur (M.P.). The unit will produce Green Hydrogen using Polymer ElectrolyteMembrane (PEM) technology based on water electrolysis. Also study on technical blendingin NG/CGD network has been initiated.
feasibility of H2
Further your Company has also taken few initiatives in line of Compressed Bio-Gas(CBG) such as (i) 24 TPAs executed with City Gas Distribution (CGD) & CBG producers Gas supply commenced to 6 GAs; (ii) MoP&NG has mandated GAIL foroperationalization of CBG CDG synchronization for usage in CNG(T) and PNG(D); (iii)Support announced for 400 CBG plants and consequently 253 LOIs for CBG plants issued.
Your Company is setting Up 10 MW PEM Electrolyser for producing Green Hydrogen and hasalso entered into MoU with Gujarat Alkalies and Chemicals Limited (GACL) to explore thefeasibility of setting up 500 KLPD Bio Ethanol Plant in Gujarat and other businessopportunities related to petrochemical/chemical plant solar and wind assets.
Your Company has also taken initiatives for development of solar energy such as (i) MOUwith BHEL for development of solar power projects; (ii) Opportunities explored formanufacturing of solar cells/ modules; (iii) collaborated with International SolarAlliance (ISA) as a corporate partner.
Before I conclude on behalf of the Board of Directors I wish to convey our sincereregards and deep gratitude to our valued stakeholders for continued support and trust. Youalways have been the motivational force that has facilitated us to move ahead and achievetargets despite the numerous challenges. I also put my heartfelt appreciation for all GAILemployees who took on a courageous responsibility with a commitment to ensure energy andfeedstock supplies even during the worst COVID-19 situation. They are the backbone of thisCompany and they have put their best effort day after day to transform your Company and tomake it more competitive.
I would like to conclude by saying that your Company is not only resilient enough to gothrough this tough time but also ready to shape the energy future. We will keep working tomake a difference in your life and to enhance the quality of your life through cleanenergy and beyond.
|Manoj Jain |
|Chairman & Managing Director |