Annual Report 2023-24

Indraprastha Gas Limited is a leading natural gas company dedicated to delivering safe, reliable and clean energy solutions. Our Company's foundation is built on a simple yet powerful idea, that energy should be generated in a manner that prioritises the well-being of the people in particular and the planet at large. We believe that safe operations are the cornerstone of our business and we work tirelessly to ensure that our facilities, pipelines and processes meet the highest standards of safety.

Reliability is at the heart of our operations. Our team works around the clock to ensure that our energy supply is uninterrupted, providing the energy needed to power progress and growth. As we gaze at the future, we recognise the importance of cleanliness in our operations. We are dedicated to reducing our environmental footprint and consistently invest in innovative technologies that promote a greener tomorrow.

As we transition towards a sustainable future, we remain focused on making a positive impact on the world around us. Our goal is to be a leader in the sustainable energy industry, delivering clean, reliable and affordable energy solutions that benefit both people and the planet.

Our Vision

India's leading clean energy solution provider through customer centricity, innovative technology and diversification, with an international presence.

Our Mission

Committed to providing safe, reliable and clean energy solutions to improve quality of life and enhance stakeholders' value.

We have solidified our position in the City Gas Distribution (CGD) industry and are recognised as a prominent player, catering to a wide range of customer segments. The promoter companies of IGL include GAIL and BPCL, both of which are esteemed Maharatna Companies.

Operating in prime locations like Delhi- NCR, we benefit from the region's dense population and thriving industrial activity, thereby ensuring consistent demand for our products and services.

We have made substantial investments in a sturdy and dependable infrastructure, encompassing an extensive pipeline network and modern CNG stations.

Dear Shareowners

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.

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 districts in 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.

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.

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.

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

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

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

Physical Performance

During the year, the Company recorded sales as under:

Product

Compressed Natural Gas (CNG)

Piped Natural Gas (PNG)

Total

Average Sales / per day (mmscmd)

Figures in Million Standard Cubic Meters (mmscm)