GAIL (India) Limited (GAIL.NS) Earnings Call Transcript & Summary

Namaskar, and a very good morning to all. I, Sandeep Kumar Gupta, extend a very warm welcome to all our shareholders, my colleague, directors, chairpersons of Audit Committee, Stakeholders Relationship Committee and Nomination and Remuneration Committee, representatives of joint statutory auditors and secretary auditors and all attendees of 39th Annual General Meeting of Gale India Limited. The 39th Annual General Meeting of the members is being held through video conferencing in line with the general circulars issued by the Ministry of Corporate Affairs and [ circular ] issued by the Securities and Exchange Board of India. And as per the applicable provisions of the Companies Act 2013, and the rules made there under. I now request Shri Rakesh Kumar Agarwal, Company Secretary to inform you regarding participation in the meeting.

Dear members, the facility of joining the AGM through video conference has been made available to the members on first come first serve basis. All the members who have joined this meeting are by default placed on mute mode to avoid any disturbance arising from the background noise and to ensure smooth and seamless conduct of the meeting. Once the question-and-answer session starts. The name of members who have registered themselves as speakers, will be announced one by one by the moderator. During the AGM, if any member faces any technical issues, he or she may contact the helpline number mentioned in the notice of AGM. The register of Directors and key management personnel, along with the shareholding and register of contracts or arrangements have been made available electronically for inspection by the members during the AGM. As there is no physical attendance of members, there is no requirement for appointment or proxy. I now request the Chairman to continue with the proceedings of the meeting.

Thank you. Participation of members through video conference is being reckoned for the purpose of quorum as per the circulars issued by MCA section 103 of the Companies Act 2013. We have the requisite quorum present through video conference to conduct the meeting. The quorum being present, I call the meeting to order. I call on my fellow Board members and auditors who are attending the meeting. First, Shri M V Iyer, Director, Business Development. Shri Jain, Director of Finance. Shri Deepak Gupta, Director Projects. Shri Aysh Gupta, Director, Human Resources. Shri Sanjay Kumar, Director, Marketing. Shri Rakesh Jain, Independent Director and Chairperson Audit Committee. Shri [ Dan Sami ], Independent Director and Chairperson Nomination and Remuneration Committee. Shri Praveen Mal Khanooja, Independent Director and Chairperson Stakeholders' Relationship Committee. Shri Sher Singh, Independent Director. Shri Sanjay Kashyap, Independent Director. Shri Ravikant Kolhe, Independent Director. Representative from [indiscernible] company joined the statutory auditors through video conferencing. Representatives from [ Mass Ganji Minocin ] company joined executory auditors through video conferencing. Representatives from [ Mes ] Agrawal and Associates secretarial auditors through video conferencing. Thank you.

I request Chairman to kindly address the shareholders.

Dear shareholders, good morning and a very warm welcome to each and every one of you. It gives me immense pleasure to greet you all at the 39th Annual General Meeting of Gail India Limited. I extend a very warm welcome to you on behalf of the entire Board of Directors and I thank you all for making it convenient to attend this meeting. It is for a fourth year in a row that our shareholders are able to participate in the AGM from the comfort of their locations through this virtual format. Your company is celebrating its 40th year of inception and it is indeed a privilege and honor for me to present the annual performance of your company at this historic moment. The annual report, including the annual accounts of the company for the year ended March 31, 2023, has already been circulated to you. And with your permission, I can see that as read. Gail's been country's flagship natural gas company is a proud member of India's clean energy infrastructure and is making consistent efforts on the ground while significantly contributing to the country's best for a gas-based economy. I would like to take this opportunity to present to you the highlights of achievements of your company in the year 2022, '23. The year 2022 witnessed extreme volatility and shift in geopolitical dynamics, which affected the world's energy ecosystem, resulting in a difficult year for the global majors market witnessing significant ups and downs. Gail did not remain unaffected as we suffered supply disruptions in one of long-term LNG sourcing contracts, coupled with reduced allocation of domestic gas or processing plants and a record spike in global LNG prices. However, our resilience and expertise help effectively managing this crisis. These trainers efforts were put in to overcome the challenges while leveraging every opportunity and remaining steadfast in our endeavors. Despite all the challenges, your company remains committed to boosting the country's energy security by bringing processing and distributing natural gas while enhancing value for all stakeholders. I'm glad to share that this is the first time that the turnover the company has surpassed the INR 1 lakh crore mark in its history. For financial year 2023, GAIL achieved the gross turnover of INR 1,43,976 crores, an increase of 57% over the previous year. Revenue from operations from Natural Gas Transmission segment in FY '22, '23 increased to INR 6,661 crore as against INR 6,392 crores in financial year '21 '22. Revenue from operations from natural gas marketing in FY 2022, '23 increased to INR 1,35,290 crores as against INR 77,326 crores in FY 2021, '22. During the year, your company was able to earn revenue from operations of INR 4,917 crores from its petrochemical business. Gas transmission and gas marketing are the key drivers of GAIL's business. And during FY '23, we transmitted approximately 107 MMCM of natural gas marketed 95 [ MMCM ] of natural gas and sold 399 TMT of polymer. Current year seems more promising, and it is estimated that your company will achieve over 120 [ MMCMD ] of Natural Gas Transmission, over 100 MMSCMD of natural gas sales and around 800 TMT of polymer sales. The total CapEx for financial year '23 was around INR 10,000 crore, and company is growing steadily and creating infrastructure facilities across the nation. We are targeting to incur a CapEx of approximately INR 30,000 crores in the next 3 years, mainly on pipelines, ongoing petrochemical projects, CGD projects, operational CapEx, equity contribution in group companies, et cetera. With a view to develop a national gas grid projects are being until to collect every part of the country. FY 2022 '23 has been fruitful for whitelane project execution, which achieved over [ 13 -- 30-kilometer ] of pipeline lowering and commissioned around 1074 kilometers of pipeline. Honorable Prime Minister dedicated the Bokaro-Angul pipeline to the nation on 12 July '22, and also laid the foundation stone for Srikakulam-Angul pipeline on 12th November 2022. Your company commissioned Dhamra-Angul mainline with per lines to Jamshedpur, Raji, Kata and [indiscernible] , which enabled our LNG supply from Tamara LNG terminal, and that had 1 major gas source to our pipeline network on the East Coast. Further, your company also completed Sultanpur-Jhajjar-Hisar and Haridwar-Rishikesh-Dehradun pipeline. In addition, your company has completed 30 numbers of hookup connections to CGD geographical areas. With over 15,600 kilometers of pipelines under operation and around 4,200 kilometers of pipelines under construction. Your company will complete around 20,000 kilometers of national gas trade in the next calendar year. In the recent bidding at PNGRB, your company has also won the license to lay build, operate or expand natural gas pipeline above 160 kilometers, namely the Gordas Jamur natural gas pipeline. With this, your company shall be enabling excess of natural gas to the northern as well as the northeastern parts of the country also through [indiscernible] pipeline, section as an integral part of Jagdishpur-Haldia & Bokaro-Dhamra pipeline. The development of natural gas infrastructure, including the national gas grid development of CGD GAS across the country, ramping up the exploration and production activities, et cetera, gives positive signals to the gas market. I'm happy to share that based on GAIL's submission and enabling regulations, PNGRB has determined the levelized integrated tariff for GAIL's integrated natural gas pipeline, which should lead to an increase in natural gas transmission revenue for your company. The implementation of unified tariff would also significantly boost capacity utilization of natural gas pipeline network as it is a step forward by PNGRB in the direction of one nation, one grid and one tariff. With India's increasing petrochemical demand, India is projected to contribute more than 10% of the incremental global growth in petrochemicals over the next decade. Your company has entered in the 25th year of petrochemical business and our commitment of expansion in petrochemicals with diversified product portfolio continue. We have acquired 1.25 MMTPA PTA plant of our file JV of Petro chemicals Limited, and renamed it as Gail Mangalore Petrochemicals Limited. This acquisition offers deal an opportunity to add new chemical product that is purified [ Teratai ] acid or PTA, it existing product portfolio. Your company is also implementing 500,000 tonnes per annum of country's first propane the hydrogenation polypropylene plant at [ Usan ] and another 60,000 tonnes per annum polypropylene at Parta. Further, your company is also setting up its first specialty chemical plant of 50,000 tonnes per annum ISO profile alcohol at a [ Usan ] with these additions, with GAIL' s portfolio of petrochemicals, chemicals would become approximately 3 MTPA. Your company is exploring opportunities of retail sourcing for its existing petroling line while prospects of setting up of ethane cracker is also being studied. Your company is also making remarkable efforts in the development of indigenous catalysts for petrochemical production. In order to secure natural gas for the nation and its customers, your company has been making same efforts. The company is exploring long-term LNG sourcing opportunities with major globe LNG players. Your company has issued an UI to explore opportunity of equity acquisition in LNG liquification terminal along with approximately 1 MMTPA LNG tie-up from USA. Your company has taken steps to provide time connections with its natural gas pipelines to the upcoming new gas sources and upcoming LNG terminals to enable more and new conditions into its pipelines. In line with the strategy 2030, your company is exploring various opportunities for increasing its renewable portfolio through organic as well as inorganic routes. The energy landscape is undergoing rapid changes triggered by simultaneous shifts in technological development, energy transition and climate change initiatives, regulations, customer preferences and investor sentiments. Global and concerted efforts are needed to the optimal use of fossil fuels to reduce GHG emissions and achieve sustainability goals. Towards shaping a net zero future, your company is exploring various business avenues such as solar, biofuels, compressed biogas, carbon capitalization and storage, green hydrogen, et cetera. Deep valuable efforts are being carried out for penetration of renewable energy with a focus towards electrification and using it for reducing scope to emissions of the company. Initiatives have been taken for the development, renewable energy, such as development of floating solar power projects and setting up of renewable power plants function. As an integral part of MoP&NG's initiatives set up that is sustainable alternative towards affordable transportation, your company is setting up its first MSW based CBG plant of 5 tonnes per day capacity, which is expected to be commissioned by December 2023. Your company has also received approval from the government of Karnataka for setting up our MSW based 10 tonnes per day CBG plant in Bengaluru, including the lag allocation. Further, as an impetus towards import substitution and circular economy, GAIL's keen on developing a much larger number of CPG plants across India. In line with the [ Goras ] national hydrogen energy mission, your company is setting up a 10-megawatt green hydrogen production unit based on water electrolyzer and is going to be the largest India as of now with a capacity of 4.3 tonnes per day at Vijaipur in Madpardes which is expected to be commissioned by December 2023. Your company launched India's made and pilot project of hydrogen blending in CGD network. At our joint venture company, Avantika Gas Limited at [ Indore ] with 2% by volume, hydrogen blending. Currently, 5% by volume hydrogen banking is being done in AGL's PNG network. Parallel to leverage business opportunities and hydrogen economy, your company is also carrying out studies to see the impact of various levels of hydrogen blending on CGD network and NG pipeline. Your company along with its CGD subsidiaries and joint venture companies has achieved 10 point -- 10,000 deep domestic PNG connections and set up 351 CNG stations for this financial year. And has totaled approximately 73,32,000 domestic PNG connections and total of about 2,370 stations as of now. During the recently concluded [ 11 10 11 ] CGD bidding rounds, GAIL's joint venture companies were awarded 2 geographical areas, taking the total to 67 geographical areas out of total 300 authorized geographical areas by PNGRB. In the financial year '23, '24, your company will [ argue ] adding around 400 CNG stations and more than 10 lakh domestic PNG connections. In the first of its kind initiative in India, your company is setting up a small-scale LNG plants to cater to diversified areas, namely geographical areas, not having connectivity to the pipeline. Business of LNG as a transport fuel and monetizing gas from stranded fields. GAIL has procured 2 liquefication skids of approximately 16 to 18 metric tonnes per day capacity to meet this objective. The escapes are coatable and scale electrification units and are likely to be commissioned shortly. GAIL is also exploring the possibility of a small-scale manufacturing facilities in India under the [ Atmanirbhar ] initiative. Additionally, GAIL is developing an LNG supplied value chain to develop new markets and increase the consumption of natural gas in the country. The present focus is on developing a retail LNG network and installation of LNG infrastructure, inclusive of LNG dispensing stations in small-scale LNG skids, et cetera, to increase its reach to newer customer segments. Being a proactive and digitally driven company, GAIL is adopting new age technologies driven by artificial intelligence and robotic process automation and is embarking upon a corporate-wide drive in this regard. It has also implemented vendor invoice management to enhance productivity and vendor satisfaction. Your company considers its shareholders as a valuable and integral part of the organization. During the financial year 2022, '23, company paid interim dividend at the rate of 40% on equity shares of INR 10 each, that is INR 4 per equity share, amounting to approximately INR 2,630 crores in March 2023. In addition to final dividend at the rate of 10% that is INR 1 per equity share for FY '21 '22, amounting to approximately INR 438 crores, which was paid in September '22. Your company also completed a buyback of INR 5.69 million crores fully paid up equity shares, representing 1.28% of the total number of fully paid up equity shares at a price of INR 190 per equity share. Your company also issued and allotted bonus shares in ratio of 1 equity share of INR 10 for every 2 equity shares of INR 10 each held. Your company is benefiting communities and protecting the environment that will ultimately determine the sustainability of continued progress. Your company is at the forefront of countless welfare projects that promotes its CSR objectives through initiatives like GAIL Utkarsh, which provides support for specialized residential coaching for engineering and entrance exams. GAIL [ caution ], which provides support towards providing skill training to underprivileged and unemployed youth from rural and senior urban localities and Project RO, which provides health care facilities through operation of mobile medical units in various states, et cetera. Your company's flagship CSR initiative for underprivileged students that is GAIL Utzkash, mark another resounding success this year with all 100 students from its [ Calco ] center qualifying for the [ JE ] Main 2023 examination. Overall, the CSR initiatives of GAIL have benefited over 15 lakh beneficiaries in various geographies of the nation in financial year 2022, '23. Overall, I am pleased to share that your company has done well in a volatile global environment in the year gone by and achieved an excellent MOU rating from DP for MOU '21, '22. Your company has been demonstrating highest standards of ethical governance, practices and received [ nil ] comments from CAD for the 14th consecutive year in the financial year '22, 2022, '23. FY '22, '23 brought several [ license ] also like the coveted Platts Global Energy Award for Energy Transition Midstream, [ Safara ] presented annual report awards integrated reporting awards and [ SARC ] anniversary awards for corporate governance disclosures. [ Bold ] trophy for the [ TIL ] National Taxation awards, Green [ Ripon ] champions by CNBC for decarbonization efforts. PCIS Significant contribution towards energy conservation and fuel efficiency in 2023. Best Natural Gas Pipeline Transportation Company of the Year award and Best Managed Project of the Year Award for the Vijaipur Auraiya Pipeline project at the Oil and Gas awards 2022 by the federation of Indian petroleum industry, 18th cost excellence award, first position in manufacturing sector, public medium category from Institute of Cost Accountants of India for Vijaipur unit, et cetera, et cetera. GAIL has once again been included in the FTSE for good emerging market index, a market-leading tool for investors seeking to invest in companies that have strong management of environment, social and governance risk, which is a proud moment for your company. Your company is committed to conduct its business using the highest standards of governance, ethics and etiquette. It is a strong and effective governance [ rainbow ] supports the value by addressing the potential business risk and helps align management responsibilities with the Board's strategic foresight of the organization. All employees in the company embrace the values as powered by the Board. Your company's robust policies play an important role in installing these values in its [ system ]. Your company has also been compliant with the requirements of corporate governance as enunciated in safety regulations and detailed guidelines on corporate governance. Before I conclude, on behalf of the Board of Directors, I wish to express my whole hearted gratitude to the Ministry of Petroleum and Natural Gas, Government of India. Petroleum and natural gas regulatory board, all departments of central and state governments, all of you customers, stakeholders, employees and other agencies who have been instrumental in supporting your company's growth path directly or indirectly. It is with your support and confidence that it has been able to charter and spear its growth over the decades. And at [ BI ], I look forward to your consistent support in the years to come by, come as we embark on new journeys together. Thank you, ladies and gentlemen, [Foreign Language]. Now I request company secretary to inform everyone about the agenda of the meeting as well as the e-voting process.

There are no qualifications observations or comments of the joint statutory auditors on the financial statement for FY 2022, '23 in the independent auditor's report. The company is compliant of the applicable provisions of the company 2013 [ severe area ] regulation 2015 and other applicable loss for the FY '22, '23 as stated in the report of corporate governance. As per the notice of issue, resolutions are proposed or approval by the members for the following business items. Ordinary business proposed to be passed through ordinary resolution. Item one, adoption of audited stand-alone as a consolidated financial statements of the company for the year ended 31st March 2023, Board report, the auditor's report and comments of the controller and auditor's general of India. Item 2, to confirm the payment of interim dividend at [ 8 ] to 40%, that is INR 4 per equity share. On the patent equity share capital of the company already paid in the month of March 2023. To appoint a director in place of Sri Rakesh Kumar Jain, Director of Finance, who retires by rotation and being eligible offers himself for reappointment. Item 4 to appoint a director in place of Shri Gupta, Director Projects, who retires the rotation and being eligible, offers himself for reappointment. Item 5, authorization to the Board of Directors to fix the share of the joint statutory auditors for the FY 2023, '24 and for the future years effective from the financial year 2024, '25 appointed by the controller and auditor's general of India. Special business proposed to be passed through earlier regulation. Item 6, appointment of Shri Pravin Mal Khanooja as the Government Nominee Director of the company. Item 7, appointment of Shri Kushagra Mittal as the Government Nominee of the company. Item 8, appointment of Shri Sanjay Kumar as a Director Marketing of the company. Item 9, ratification of renumeration of the cost auditors of the company. Item 10, material rated party transactions insured RPT with Petronet LNG Limited. Item 11, material RPT with [ Ramagunda ] Fetilizers and Chemicals Limited. Item 12, material RPT with [indiscernible] Fertilisers Limited. Item 13, material RPT Indapas Gas Limited. Item 14, material RPT with Maranatha Gas Limited. Item 15, material RPT with the Maharashtra Natural Gas Limited. Item 16, material RPT with Avantika Gas Limited. Item 17, material RPT with Central UP Gas Limited. Item 18, material RPT with Green Gas Limited. In line with the provision of the Companies Act 2013 and [ SCBL ] Regulations 2015, the company has provided e-voting facility to the members to cast vote on all the resolutions. The remote voting facility commenced on a Saturday, 19th of August 2023 at 9 a.m. in the standard time and ended on Tuesday, 22nd August 2023 at 5:00 p.m. in a standard time. In terms of revision 44 of the severe area the company has provided 1-day live webcast of the proceedings of the Annual General Meeting for the shareholders today from 11:30 a.m. onwards is the conclusion of AGM. And the same is accessible again outside www.gailonline.com. Facility for e-voting at the meeting is also provided to the members who have attended today's AGM through VC and could not exercise their [Voting] to yield remote voting. The members may please go to the links provided by the respective e-voting services and cast their vote as per the inception provided in the AGM notice. Members who already exercised remotely voting will not be allowed to vote again. Shri Sachin Agarwal practicing company secretary, has been appointed as the scrutinizer for finalizing the voting results of this meeting. As per the requirements of the secure standards, Chairman is requested to explain the objective and implications of the resolutions as listed in the AGM notice.

Thank you. Now I'll explain the objective and implications, the resolutions sought. Item 1. Resolution is placed for approval of the shareholders for adoption of the audited stand-alone as well as consolidated financial statements for the financial year ended 31st March '23. Board's report, independent auditor's report and the comments there on of the controller and general auditor of India by passing an ordinary resolution. Item 2, the resolution is placed for approval of the shareholders to confirm the payment of interim dividend at the rate of 40%, that is INR 4 per share on the paid-up equity capital of the company already paid in the month of March 2023. Item 3, resolution is placed for approval of shareholders for reappointment of Shri Rakesh Kumar Jain, Director of Finance, who retires by rotation and being eligible offers himself for reappointment. Item 4. resolution is placed for approval of the shareholders for reappointment of Shri Deepak, Director projects, who retires by rotation and being eligible offers himself for reappointment. Item 5, GAIL being government companies, statute auditors are appointed by the controller and auditor general of India. Resolution is placed for approval of the shareholders to authorize the Board of Directors to fix the remuneration of the joint section of auditors for the financial year 2023, '24 and the future years effective from financial year 2024, '25. Item 6, the resolution is placed for approval of shareholders for appointment of Shri Praveen Mal Khanooja, additional Secretary, Ministry of Petroleum and Natural Gas, Government of India, who was nominated by the President of India as Government Nominee Director of the company and appointed as Nominee Director with effect from 16th May 2023. Item 7, resolution is placed for approval of shareholder appointment of Shri Kushar Mital, Deputy Secretary, Ministry of Petroleum and Natural Gas, Government of India, who was nominated by the President of India as Government Nominee Director of the company and appointed as Nominee Director with effect from 16th May 2023. Item 8. Shri Sanjay Kumar was nominated as Director of Marketing by the President of India. He was appointed as an additional director with effect from 15th June 2023 by the Board of Directors. The solution is placed for approval of the shareholders to appoint Shri Sanjay Kumar as Director of Marketing. Item 9. In terms of the company's at 2013 that rules made thereunder, the Board of Directors approved the appointment and remuneration of cost auditors for the financial year 2022, '23. The resolution is placed for approval of the shareholders for ratification of remuneration of cost auditors for the financial year 2022, '23. Items 10 to 18 are material related party transactions with the following related parties, Petronet, LNG Limited, Ramagundam Fertilizers & Chemicals Limited, [ Talc ] Fertilizers Limited, [ in the past ] Gas Limited, Mahanagar Gas Limited, Maharashtra Natural Gas Limited, Gas Limited, Central UP Gas Limited and Green Gas Limited. Transaction with each of the offset related parties for financial year '24, '25 is likely to exceed INR 1,000 crore. Transactions with them are in the ordinary course of business and on arm's length basis. Resolutions for material related party transactions with above related parties during the financial year '24, '25 are placed for approval of the shareholders. Now that the formal business of this meeting having been put forth, I invite the shareholders for interaction. However, before we commence the session, I request the company secretary to share guidelines for the interaction session.

Thank you, sir. To ensure a smooth interaction, all without announce, we are required to adhere to. Their interactions will be anchored by the moderator, and she'll be calling the preregistered speakers to come up one by one. Members are requested to unmute the microphone before speaking and also enable the webcam if they reach to appear on the screen. Members are requested not to take much time so that all speakers can get an opportunity to speak their views. Personal issues, grievances, repetitive questions and other general queries, if any, may be taken up at other appropriate forum to save time for the meaningful interaction on the business in hand. I request Chairman to respond to the queries of the shareholders after all the shareholders have put forth their queries. I now request the moderator to commence the interaction session. Thank you.

Thank you, sir. We will now begin the direction by calling the names or registered shareholders one by one. Now I invite Shri [ Gaganmar ] to join the meeting. [ Gaganmar ] is not available in the meeting. So we move on to the next speaker. The next speaker is [indiscernible].

Chairman, first of all, good afternoon to you, all the Board of Directors, all the staff of GAIL India Limited and my fellow [indiscernible]. Chairman, sir, [Foreign Language]

May I ask Shri Sarjeet Singh to join the meeting. Shri Sarjeet Singh is not available in the meeting, so we now go on to the next speaker. Now I invite Shri [ Malas Anarji ] to come on the screen and stay unmuted.

Good afternoon, everybody. Respected Chairman, present Board members and my fellow online shareholders. I am [ Manos Anarji ] an equity shareholder of GAIL India Limited joining the VC meeting from Kolkata. Sir for the financial year 2022, '23, our company top line achieved over [ INR 56 ] in revenue growth, but at the bottom line, registered a significant degrowth. Our company has been maintaining a healthy dividend payout and also lever for issuing bonus shares as we see in the past. Congratulations to the management team for this. Sir, I have some queries. I would like to know what has been the key reasons and why we are not able to scale up our EBITDA margin despite our revenue rising to all-time high in FY '23. Next question sir, sir, on the CT gas distribution, a significant amount of profitability coming from [ MMGL ], that is [ MoharaSto ] Natural Gas Limited even our rail gas is doing well. So what is the plan on outlook on monetization of any of the entities in the CT gas distribution? The final question, sir, on petrochemical loss. Sir, our company operating almost close to 80%. The loss has reduced on quarter-on-quarter basis but it still remains. So if you could just give us some clarity on what's happening. Nothing to add more. That is all from my side. Thank you very much, sir, and have a good day.

Now I invite Shri Manhosh Kumar Gupta to come on the screen and stay unmuted.

Hello. Good afternoon, respected Chairman, Board of Directors, fellow shareholders. My name is Manooj. I joined this meeting from my residence in Kolkata. I feel proud to be a part of GAIL because I'm shareholder of the time of [indiscernible]. Sir, I told you and your Board for the good result of the company in spite of several challenges. So thanks to the company [ secretary ] to help us to drive this meeting through VC. And thanks for your dividend. And sir, is there any direct or indirect on our company due to wars of Ukraine War. Several countries has hit due to [ war ]. So is there any director on how you face the challenge of inflation. And what's your future plan with CapEx for next 2 to 3 years? And what is your plan for demerger to give the sales some days back, there was a plan of demerger to separate. To lease the 2 units in the stock market. So what's the -- and how much projects are in the pipeline for the next 2 to 3 years? And how you will reward to the investors? As for the balance sheet, there is no reflection in the stock market, sir. So how the investors will get returns. Thank you, sir. I strongly support all the resolutions, and I wish to go to give you more success to take the company on new heights with the help of our entire team of management, executives and the employee. Thank you.

Thank you, sir. Now I invite our next speaker, Shri [ Agco ] to come on the screen and stay unmuted.

[Foreign Language].

Thank you, sir. Now I move on to the next speaker. Shri Santosh Kumar Saraf to come on the screen and stay unmuted.

Hello. [Foreign Language].

Thank you, sir. Now the next speaker is Shri Kashi Sagar. I request Shri Kashi Sagar to come on the screen and stay unmuted.

[indiscernible]. Can I go ahead? Good morning to all. I'm honored to have the opportunity to address you all today and would like to express my gratitude to the Board of Directors for allowing the stand-on again. First of, I [ held ] the Board of Directors for [ confining we see more imaging ] for allowing shareholders present and request to continue the strength. I'm a shareholder. And I must commend them and admit for [indiscernible] for the shareholders. However, I'd like to raise a couple of concerns. My concern pertains to the implication of saving on account of the [indiscernible] Board of meeting. I believe it would be prudent and allocate a portion of these funds to the [indiscernible] shareholders. More particularly among speaker shareholders who actually participating the AGM speakers. [indiscernible] contribution at environment. It will be gesture prevention and appreciation to exclude all momentum among them on the operation of important [ questions ]. Sir, can you provide a [ breakup on account of digital booking ] cost and across [ virtual ] if possible. [indiscernible] consumer proposals and exclude the possibility of joining the gesture appreciation. [indiscernible] that it will reinforce the portion between the company and shareholders and contribute to overall [indiscernible]. My next concern, our [ watch tab ] is well [ begin ] to transition towards renewable energy consist and reduce its carbon footprint. [indiscernible] any investment of partnerships, GAIL had made in the renewable energy sector. While [indiscernible] segment to the overall [indiscernible]. Are there any plans for capacity expansion or new product offering in the segment? My final concern, that company has been hesitant in supporting individuals in need, including myself. I have shared my concern in the past and follow-up constantly, but my approach is not be considered. To not any defense even person be part of [ safe side ] activity, then my company is consistent in supporting. [indiscernible] If I can't get a [indiscernible] like in GAIL then who can I turn to? I'm rehandling [indiscernible] meeting in the hope of consideration for support. To clarify [indiscernible] are not taking a handout of free money nor anybody value independent and [indiscernible] and I hope you can understand and respect my regards to [indiscernible] independence. Thank you for considering my request. I firmly view that I can make significant contribution to our organization and have positive impact on GAIL. I will wait for the response and appreciate a time line attention [indiscernible]. Nextly, I would like to request for assistance [indiscernible] auditor and fellow [ propostion ]. I believe that [indiscernible] would so in order [indiscernible]. Thank you so much, sir.

Thank you so. Now I invite Shri Praveen Kumar to join the meeting. Shri Praveen Kumar is not available in the meeting. Now I invite Shri Kumar Agarwal to come on the screen and say unmuted.

Hello. Respected Chairman and MD, Mr. Sandeep Kumar Gupta, our Director of Finance, [indiscernible]. Good afternoon in regards to everyone, sir. I will note that the last year's consolidated revenues were INR 1.46 crores against [ INR 93.870 ] crore. Sir, the revenues were high because the gas prices were high, not because we sold a lot more gas and the products because it was the gas prices, which went up due to Ukraine war and the short supply of gas due to -- are not shipping that to other countries, sir. So this was the reason for high. Now with the stabilization of gas prices to a little -- a little lower level. I assume that the turnover may not be -- the top line may not be to that level. And even the high price had affected our profits last year, which came down substantially, I hope that they will come back to previous levels of PAT, which are INR 12,000 crores last year, the previous year, and this was INR 5,000 in the year which we reported. INR 5,600 crores, which -- in which we are [indiscernible] now. So now I'm sure that we will come back to better levels of margins with this thing. And so my query sir. Sir, what will be the CapEx needed for the petrochemical segment for the CT gas distribution segment in the next 3 years, and so. This is what asking you, sir, the pipeline laying it [ 1,200 ] kilometers that we had to lay for [indiscernible] 4,200 [indiscernible]. We've already laid 15,600 kilometers, then we are laying 4,200 kilometers of pipeline. What would be the expenditure for that and in the...

I request sir to come on the screen and stay unmuted.

I just want to say that our corporate government is [indiscernible]. Sir, I want to say communication [indiscernible] department [indiscernible].

Thank you, sir. Now I invite Shri Kankanala Barajas to come on the screen and stay unmuted.

Good morning, Chairman, sir. I'm [indiscernible] calling from Hyderabad. First of all, I'm [indiscernible], a healthy and fine, wonderful the annual report, sir. Sir, the pictures of the entire Board of Directors [indiscernible] welcome our new Chairman and Managing Director, Sandeep Kumar, wonderful, sir. I thank the board for giving the bonus issues, and I thank the board for giving the wonderful dividend [indiscernible]. Sir, I have no questions regarding this, sir, because we are participating -- we had been 4 years or companies in this year, next year, happy as we expect a special dividend from the board, sir. Please consider a special dividend for the [indiscernible] GAIL, sir. Once you can say entire Board [indiscernible] every share of investing, can you arrange a plan to visit for the shareholders. So we'll be more happy and to visit our plans. Once again, thank you very much for doing this so to speak. God bless you all, sir. Thank you, sir.

Thank you, sir. Now I invite Shri [ Gora Liladar ] to join the meeting. Sri [ Gora Liladar ] is not available in the meeting. Now I invite Shri [ Rachada ] to come on the screen and stay unmuted.

Thank you, sir. Thank you for the chance to speak with you. Myself, [ Chetan Janda ], and I'm joining the AGM from at my home. Sir, on the next financial year [Foreign Language] INR 77 [Foreign Language]. Looking at net profit margin [Foreign Language]. Look at Page #22 [Foreign Language].

Due to technical difficulties, we now move on to the next speaker. Shri [indiscernible] please come on the screen and stay unmuted.

Can you confirm if I'm audible and visible?

Yes, you are. Please go ahead. You are not visible, you can put on your video camera.

Yes, I'm trying to enable my [ visibility ] on [ so please on ].

You can go ahead, we can hear you.

Right. Hope I'm visible also now. Anyway, let me start my note. Respective Chairman Sandeep [ Jain ] Director of Finance and Head of Finance, Shri R. K. Jain, Board of Directors, Secretarial Head, Shri [ Agarwal ] and all my co-shareholders. Good morning. Rather, it is good afternoon now to everyone. Chairman, sir, the year under review has been an excellent year for our company. Glad to see the double-digit growth in revenue. You can always be hardwork putting [ Borivali ]. Now you have given an excellent presentation. And additionally, our annual report provides detailed working of our company. So there is nothing to question to the [ learned ] management. However, I have a couple of ironical observations, which I would like to share with you. My first observation is that our topline revenue increased by 50%. Ironically, our bottom line has reduced by 50% there. I would like to know that what are the good reasons for significant lowering of our profit margins. My second observation is, in the year under review, first, we went for the buyback of shares. And later on, ironically, our company issued bonus shares. I am missing out if at all, I have been investing since last 3 decades. I have not come across any other instance. We are a company within the same financial year has first bought back and then issued bonus shares. I would like to know the rationale behind such boots. Was this government advisory-led decision or someone else's. Because the losses which I have made in tendering my shares. Sir, now let me move to the CSR activities. We have close to INR 100 crores of annual budgeting towards CSR spending. Given our reach in all the Indian states, we have recently seen the unprecedented flood situation. Would like to know that what are our contribution towards the rehabilitation of the people who have got impacted. What I want to draw your attention is that as far as education or health is concerned, most of the states are already doing enough on these fronts. Now we have to look beyond this. We must use our funds, very judicially to now support the people who are impacted with basic amenities. That's what I believe, and I want to recommend. Apart from this, I just want to thank the secretarial staff who helped me to connect with you today, [ Maris ], is doing fantastic. The corporate government. I appreciate corporate governance, and that's it for me now. Thank you.

Thank you, sir. Now I invite our next speaker, Shri [ Antin Shuhan ] to come on the screen and stay unmuted. [ Shri Antin Shuhan ] is not available in meeting. So we now move on to our last speaker. Shri [ served Jitsi ]. Sir, please come on the screen and stay unmuted.

Good afternoon to you, all the Board of Directors and my fellow shareholders. Chairman, sir. [Foreign Language]. Thank you, Chairman, sir.

Thank you, sir.

I would now invite Chairman, sir, to respond to the queries of the shareholders.

[Foreign Language]. We are very extremely thankful to you all for praising our performance and reposing faith in us. There are certain questions, which I will try to respond here. First is regarding the lower profit margins in the last year. Despite higher revenues, so as you are correctly one of the shareholders correctly mentioned, the higher revenues are primarily due to high gas prices. But then there were reasons for decrease in the profitability. As you are aware that our profits do not increase or decrease in proportion to the revenue. Our marketing margins remain range bound only. And the other sectors where the margins are based on international prices, they are the revenue impact or the profitability impact is much lower, which is petrochemical or LSC segment. So last year, [ AkopataAgati ] Gas prices , [Foreign Language] Questions happening regarding CGD monetization plan. [Foreign Language] but then going forward, as the things normalize, we will definitely explore the feasibility of conducting at least a meeting in the hybrid mode. [Foreign Language]. So we do file FIRs against any such action. But then what action is taken on those FIs is not within our hands. Definitely, but we are doing a lot of -- we are taking a lot of measures to see that to increase the sensitivity and to see that such disruptions, such damages do not take place. And in that direction, we are doing a lot of boundary management also. One question was regarding employment opportunities. That in fact, we are proud to say that in this particular year also, we are hiring more than 300 professionals in various grades including more than 100 engineers also for campus. [ Foreign Language ] retirement [indiscernible] so you are hiring process [indiscernible] continue, right. [ Women ] empowerment maybe [indiscernible] to a [indiscernible]. But within the company also, we are taking lot of initiatives to promote women power within the company. And we are also taking measures to see that the ratio of women manpower within GAIL also increases. Then upnext questions, company secretary department [ Foreign Language ]. We -- with every passing year, we definitely try to improve our practices and we assure all the shareholders that we will take all due measures, which will help the shareholders, definitely. As was also informing the speaker segments, in that direction, also, we will take due measures in the future years. You see that question, inflation outlook to [Foreign Language] Bank of India like other central banks, have been increasing the interest rates, but I think the situation is under control as of now, and we hope that the inflation should not increase any further. Question after CapEx [Foreign Language]. Question after demerger [Foreign Language]. A question after insider trading [ Karamba ]. So we do take all necessary measures within the company to ensure that there is no insider trading opportunity available to anybody. And in that direction, we remain committed to ensure this governance. And we are -- we have put in all measures in place to see that the insider trading does not happen. A question about savings, virtual conference through saving [Foreign Language]. It is only to take care of the situation. And which long in fact -- they are very happy through this we [ see medium ] that they can participate in that -- in this AGM through their remote locations also. But definitely, if we do hybrid, that will also be taken care of. The questions were also regarding RE measures, net zero, et cetera, and whether we are entering into any partnership in this direction. So as I've mentioned in my speech also, and as you are aware, that GAIL has declared its net zero ambitions, and we want to reduce offset 100% of our scope and scope 2 emissions and 35% of our scope 3 emissions by the year 2040, which is good to 30 years in advance in ahead of the country's ambition to become net zero. And in that direction, we are taking a lot of measures. The measures are in the area of solar, in the area of wind, in the area of biogas, biofuels, green hydrogen, et cetera, et cetera. And also carbon capture and utilization. And in this direction, we recently entered into an MOU with an international low carbon company which is LanzaTech, to explore the possibilities in this direction and to see whether any thing in CCS can be done. One particular, Mr. [ Kosiek ] perhaps mentioned about the support, which requires for certification activities. I only want to tell from this platform that Mr. [ Kosiek ] we salute you that despite you're handicap, you are performing so well and I, are participating in the AGMs also. And I believe that you do not need -- you would not need any support and at your own, you will be able to rise to greater heights. But then we will definitely see what best can be done in that direction also. The questions were also regarding dividend, one particular shareholder mentioned, I think there was a mix up. We declared 40% interim dividend in the last year. And we paid a 10% final dividend in respect of '21, '22 paid in September '22. So that was the clarification. And he also mentioned about 77 EPS. That is not the EPS of GAIL. Perhaps, again, there was a mix up. But let me tell you that the payout was 49% in the last year. And we are committed to pay more dividends with other returns to the shareholders. And again, as per the guidelines also, we are committed to pay 30% of our PAT at the minimum or 5% of the network. So in any case, we have paid much above that threshold by paying 49% of payout. The one request was also regarding a special dividend in 40th year of GAIL formation. Now I had my own as an individual, I cannot admit anything in this regard because any dividend has to be a Board decision. But we assure you that you, you rate that our performance is good, and we are able to pay a higher dividend in the current year. The question was also regarding natural gas sales projection. So as I mentioned in my speech also, we are expected to do more than 100 million MMSCMD of gas sales in the current year and more than [ 120 ] MMSCMD of transmission this year. One question was regarding buyback followed by bonus and whether that was because of any government directive. So yes, as I mentioned, there are deeper guidelines which govern that the companies have to resort to buyback or pay bonus or issue bonus shares. And we followed those guidelines in the last year. But in any case, I think buyback was a cash refund to the shareholders by extinguishing the shares. And in the bonus issue, there is no cash involved. So I think there should not be any room for any apprehension. One question was also regarding rehabilitation after COVID under CSR. So let me assure you that health remains the topmost priority of GAIL and also of the Government of India. And in that direction, we are taking a lot of measures, which definitely also cover post-COVID rehabilitation. So there should not be any apprehension in that direction that we are not taking due measures towards post-COVID rehabilitation. So I believe that I have been able to respond to most of the questions. But if there are any unanswered, then in case some speakers could not join or speak due to technical reasons or queries raised during the meeting have remained unanswered, the queries may be sent to the company through e-mail. The same will be responded suitably. Now with this, I thank you all very much for your questions and interaction. And we have received queries suggestions and complements from many members on e-mails who could not join this meeting. We acknowledge their sentiments and thank them for their continued relationship and support. And now I hand over back to the company secretary.

To enable the members to cast their votes who have not voted through a remote e-voting. The results will be announced in 2 working days of the conclusion of the meeting and the same would be [ intimated ] to the stock exchanges and uploaded on the website of the company and CDSL. Before I hand over Director [ Raja ] to offer the voter thanks. I would just like to clarify that as regard the dispatch of physical annual reports, there was no vendor period, and we have received a total of 188 request so far until yesterday, and we have dispatch to all the shareholders, the physical copies of the annual report. And now I hand over to [indiscernible] to propose a vote of thanks.

I am honored to take this opportunity to offer both of this at 39th Annual General Meeting of the company. I convey my sincere thanks to the Chairman and all the directors on Board of GAIL. I would like to express my gratitude to Shri Rekash Mishra, Deputy Secretary, Government of India, the authorized representative of the President of India and all the other valued stakeholders, shareholders, for their continued support and the trust which they have reposed in the management. We look forward to a better future and further growth of the company in the times ahead. Finally, I am grateful to GAIL's team and the organizers who work with dedication in successfully on and managing this event. Thank you very much for your participation.

As the business items of AGM have been taken out, I announced formal closure of 39th Annual General Meeting of the company and declare the meeting has concluded. Namaskar.