Over the years we have established ourselves as one of the leading natural gasdistribution companies of India. MGL has a strong presence in Mumbai Thane urban and itsadjoining municipalities where we supply both piped gas and CNG. The trust that customersand stakeholders have shown in our abilities has helped your company deliver consistentresults and achieve significant milestones during the year. We believe that our experienceof more than two decades coupled with Company's dynamic leadership empowered andcompetent workforce and pragmatic business acumen and strong promoter support provide us acompetitive advantage allowing the Company to expand and grow its business.
India is among the fastest growing economies of the world with a GDP of $2.6 trillionin F.Y. 2017-18. GDP growth rate witnessed a cyclical movement as it reached a low of 5.3%in the first quarter and bounced up to 7.7% in the fourth quarter of F.Y. 2017-18. In thebackdrop of such heightened economic activity the demand for natural gas has increasedsignificantly due to rapid growth in population increase in urbanization policy supportand development of pipeline infrastructure. By 2025
Natural Gas sector is expected to make a significant contribution to the country'senergy mix. Much of the future growth of natural gas usage in domestic economic will playout in the City Gas Distribution (CGD) segment. At MGL we are strategically positioned toleverage new opportunities in the CGD sector.
During the financial year 2017-18 we improved our operational efficiencies whilegrowing in financial terms. MGL achieved an overall growth in sales volume of 5.14% in FY2017-18 in comparison to previous fiscal. We successfully added 20 new
CNG stations and upgraded 14 existing stations which led to an increase in compressioncapacity by around 3.45 lakhs kg per day. As on date our total compression capacitystands at 30.80 lakhs kg per day. In FY 2017-18 we were able to supply gas to 103750additional households and 441 new industrial and commercial consumers.
Our financial performance during the year was admirable. We increased our revenue toRs. 2452.92 crore in FY 2017-18 from Rs. 2239.07 crore in 2016-17. Despite increase ingas cost EBITDA margin improved by 327 bps to reach 34.94% in FY2017-18. We delivered anet profit after tax (PAT) ofRS. 477.87 Crore a 21.47% increase over the PAT of Rs.393.42 Crore in the previous fiscal.
The results reflect combined effect of higher margin capture and volume growth in CNGand PNG segments. Increase in the price of competing fuels linked to Brent aided marginsin industrial and commercial segment.
MGL believes that outstanding business performance requires outstanding HSEperformance. We believe in Goal Zero which means all injuries are preventable. We workrelentlessly to ensure health and safety of our employees and contractors. During theyear we undertook various programmes to increase the awareness about safety amongst ourconsumers. Nurturing the highest level of safety standards we worked towards the goal ofzero injuries and achieved 10.35 Million Man-Hours Lost Time Injury (LTI) free operationswhich is an outstanding achievement.
Corporate Social Responsibility
Your company's commitment towards social responsibility is interwoven in its DNA. Yourcompany has synchronized its CSR with national development agenda thereby fostering thephilosophy of taking care of the community for a sustainable tomorrow. Under MGL Unnati110 students (since inception) from economic background have been assisted in their questto clear competitive engineering entrance examination. Nearly 85% of the students clearedJEE Mains while nearly 35% clear JEE Advance. Your company has also facilitated access tosafe drinking water to nearly 800 souls in remote tribal areas under Naal Paani Yojana.More than 400 children of sex workers are being groomed by your company with the objectiveof putting them in mainstream education. MGL is also empowering 10000 youths from 30government aided and low-cost affordable schools in Mumbai with remedial education andcounselling of vulnerable students. Your company is also contributing towards theSkill's India Campaign' with its intervention through MGL
Hunar under which employment oriented technical training is provided to unemployed andunderemployed youths. The trades include Gas Plumbing Welding Electrician andRefrigeration and Air Conditioning. Your company is also contributing towards Govt. ofIndia's initiative of Swatch Bharat Abhiyaan' with construction of toilets inschools and other institutions. CSR initiatives of your company have also won accolades.Being a socially responsible corporate your company will continue to strengthen its CSRportfolio to create shared value.
Moving ahead MGL continues to focus on its twin strategic priorities - increasing thepenetration in the current authorized geographical area (GA's) and expeditious rollout ofCGD infrastructure in the newly authorized Raigad district. We expect to spread our reachand set up new CNG stations and upgrade existing CNG stations in coming years. Our futurepriorities remain embedded in expanding our network to reach all our customer segments inour geographical areas.
On behalf of the Board of Directors and the entire management team i would like tothank all our shareholders investors and customers for showing faith in us. We would alsolike to thank all employees of MGL for another year of stellar performance. We lookforward towards many more years of success and your support.