Annual Reports - Indraprastha Gas Limited

Company intends to keep it as a focus area with target to add more and more industrial and large commercials in our customer
base. This would have positive impact both on the turnover and profitability of the Company.
Outlook on Threats, Risks & Concerns
PNGRB has issued Regulations for authorization, exclusivity, tariffs, technical standards, service obligations etc. for City Gas
Distribution Companies. These regulations are having ramifications on the business of the Company, however, the Company is
fully geared up to take new challenges in the emerging competitive environment.
The Company has been given marketing exclusivity in NCT of Delhi for a period of three years. Thereafter, the field would be
open for competition in this geographical area. However, with its first mover advantage and better understanding of the needs
of its customers, the Company would be able to retain its position in the market.
As regards supply of natural gas under Administered Price Mechanism (APM) is concerned, GAIL (India) Limited is the sole
supplier to the Company. GAIL being one of the promoters of the Company, IGL does not foresee any risk over supply of
natural gas. Moreover, gas purchase agreement with GAIL assures us of priority supply in the event of stoppage or any disruption
in supply. In addition, the Company has signed agreements with BPCL and GAIL for additional gas.
The Company has set up 181 CNG stations spread all over the Delhi, Noida & Greater Noida to meet the demand of transportation
sector. Due to recent growth in CNG vehicles, especially private cars, there has been a need to add more CNG stations for
which the speedy allocation of land from land owning agencies had been a matter of concern. However, with the support of
Delhi Government, the Company is confident to get adequate numbers of land for setting up new CNG stations before the
forthcoming Commonwealth Games in 2010.
Compression capacity has already been augmented at existing CNG stations by putting additional compressors and replacing
low capacity compressors with high capacity compressors. The Company is also trying to add more outlets of Oil Marketing
Companies (OMCs) for providing CNG dispensing facilities.
Performance Review- CNG & PNG
Both CNG & PNG business have performed well during the year 2008-09. The Company sold 605.25 million SCM of Compressed
Natural Gas (CNG) and 54.26 million SCM of Piped Natural Gas (PNG) as against 504.62 million SCM and 42.86 million SCM of
CNG and PNG respectively in the financial year 2007-08.
The Company has an expanding network of 181 stations for supply of CNG as on March 31, 2009. The estimated number of
vehicles using CNG has gone up to more than 2.50 lakhs in March 2009 and our back-end infrastructure, compression capacity,
dispensing outlets are under continuous augmentation to meet the growing demand. The Company has provided PNG connections
to over 1,38,000 domestic and more than 315 commercial customers as on March 31, 2009.
Financial Performance
Gross turnover of Rs. 9697.76 million for the year ended March 31, 2009 showed a growth of 18.71% over the previous year
turnover of Rs.8169.27 million.
Profit before tax has been Rs.2588.60 million as against Rs.2608.95 million in the previous year. Profit after tax has been
Rs. 1724.74 million as compared to Rs. 1744.55 million in the previous year.
The Company is meeting its fund requirement through internal accruals and continue to remain a debt free Company.
Share Capital
Share Capital of the Company comprises Equity Share Capital of Rs.1400 million.
Reserve & Surplus
Reserve & Surplus of the Company were Rs. 5434.17 million as at March 31, 2009 as against Rs. 4364.60 million as at
March 31, 2008.
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