ENVISIONING PROGRESS AND FUTURE SUCCESS
Our indomitable commitment to innovation, sustainability, and excellence continues to
drive us towards new horizons of growth and leadership.
Dear Stakeholders,
Reflecting on our journey at Asian Energy Services Limited, I am pleased to share our
collective achievements and strategic initiatives that have propelled us forward in the
dynamic energy environment. Our indomitable commitment to innovation, sustainability, and
excellence continues to drive us towards new horizons of growth and leadership. We take
immense pride in our Company's robust operating and financial performance, a result of our
dedication to excellence across all facets of our services.
Economic Overview
India's economic resilience and stability are underpinned by the Government's
substantial investments in infrastructure and local manufacturing, complemented by the
consistent performance of service industries. Economic momentum continues unabated, driven
by strong urban demand and a gradual recovery in rural areas. The crucial role of public
sector investments cannot be overstated in propelling these advancements L forward.
K The Interim Union Budget 2024-25 embodied the ethos of 'Sabka Saath, Sabka Vikas, and
Sabka Bf Vishwas' and was driven by the nationwide * initiative of'Sabka Prayas.'
Itfocused on
upliftingfour major segments: the 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth),
and 'Annadata' (Farmer). The Central Government increased the infrastructure outlay by
11.11%, raising it from Rs. 10 lakhs Crores to Rs. 11.11 lakhs Crores, amounting to 3.4%
of the GDP. This initiative aims to constrain the fiscal deficit to within the 4.5%
threshold by 2025-26.
Industry Overview
The Government has implemented several policies to address the growing demand,
including allowing
100% foreign direct investment (FDI) in sectors like natural gas, petroleum products,
and refineries. The FDI cap for public sector refining projects has been increased to 49%,
sans any disinvestment or dilution of domestic equity in existing PSUs. This move has
drawn investments from both domestic stalwarts and global enterprises, with noteworthy
participation from entities like Reliance Industries Ltd. (RIL) and Cairn India.
The sector anticipates a staggering USD 25 Billion influx in exploration and production
investments. With 23 refineries already established,
India is solidifying its position as a key refining hub and strategizing additional
expansions to capitalize on foreign investment in export-oriented infrastructure,
including product pipelines and export terminals. India's crude oil production for the
April- March 2024 period stood at 29.4 Million metric tons (MMT).
Business Highlights
We are firm in elevating our performance amid a significant upswing in fulfilling our
existing orders. With a confident outlook on securing new contracts across all business
verticals, our goal is to fortify our order book. Our primary focus remains on delivering
current projects with exceptional operating margins. In addition, we are actively
strengthening our management team to spearhead our growth and achieve our ambitious
objectives.
Oil & Gas Production
We eagerly anticipate the imminent production ramp-up at Indrora, which is expected to
make a significant impact in the months ahead. Launching production at Cambay and Mewad
fields marks key milestones in our growth strategy. We are pursuing Production Enhancement
Contracts (PEC) with ONGC and Oil India to acquire high-potential producing acreage. On
the international front, we are evaluating opportunities to acquire O&M projects and
PECs in producing fields, while exploring strategic partnerships with global leaders in
production technology to enhance our capabilities.
Seismic Services
Over the decades, Asian Energy has firmly established itself as a leader in the seismic
exploration sector, distinguished by a legacy of excellence and innovation that supports
our continued success and future growth. Leading our innovative efforts in seismic
services, I take immense pride in introducing India's first wireless seismic technology.
Our extensive operations across India, Indonesia, Myanmar, and Iraq demonstrate our
adeptness in managing multiple projects efficiently and effectively. Through strategic
collaborations with industry giants such as Wireless Seismic, INOVA, and Sercel, we
provide advanced solutions that redefine industry standards.
Since 2016, we have surpassed 500 Crores in successfully executed seismic contracts,
navigating complex environments, and consistently meeting stringent deadlines.
Coal & Minerals
We are thrilled to announce our latest achievement: securing a prestigious contract
worth approximately Rs. 148 Crores in the coal segment. This represents our second
successful collaboration with SCCL, showcasing their confidence in our abilities and our
proven track record of client satisfaction. It epitomizes our optimistic outlook on the
vast opportunities within the mineral sector, particularly in coal. This accomplishment
signifies a strategic shift from our traditional focus on seismic services to a more
diversified approach. We are excited about the promising prospects ahead in the mineral
industry and look forward to reaching new heights of success.
Material Handling
With our proficiency in streamlined material handling and mechanized transportation,
Asian Energy stands ready to support and enhance the infrastructure of India's coal
industry. The emphasis on modernization and the FMC initiative offer a compelling
opportunity for our Company to make a significant impact on the growth trajectory of this
vital sector.
Financial Highlights
We delivered strong operating and financial performance across the board, a result of
our firm commitment to excellence in every aspect. Our consolidated net-worth (equity) as
of March 31, 2024 was Rs.276.5 Crores.
Our revenue increased to Rs.305 Crores compared to Rs.110 Crores in the last year. Our
EBIDTA stood at 46 Crores and a profit of Rs.24 Crores was incurred as compared to a loss
of Rs.(42) Crores in 2022-23.
Embracing the Future
With advanced technological capabilities, a diverse portfolio, and extensive geographic
reach, we are poised to seize upcoming opportunities. Our strategic positioning allows us
to bid for high-profile seismic programs of considerable significance.
Key initiatives on our radar include the prestigious National Seismic Program I by Oil
India Limited and the esteemed National Seismic Program II by the Government of India. By
engaging in these initiatives, we aim to further strengthen our standing as a premier
player in the industry.
Furthermore, we recognize significant developments in India's coal sector, projecting a
targeted supply of 780 Million tons in 2023-24, reflecting an 11% increase from the
previous year. About 80% of this production is earmarked for the power sector, in line
with the Government's goal to ensure seamless electricity provision across the nation.
Looking forward, our roadmap targets achieving 1 Billion tons of coal production by
2025-26, supported by substantial investments in new railway infrastructure and the
optimization of existing capacities. The First Mile Connectivity (FMC) initiative,
integral to our strategy, prioritizes dispatches via non-road modes such as conveyors and
rail, with 61 projects in the pipeline capable of handling 763.5 Million tons per annum
(MTPA). Our successful response to the soaring demand for our services in India highlights
our capabilities. With ample opportunities and our business potential, we are confident of
delivering stellar performance as we move ahead.
Closing Note
I wish to extend my heartfelt appreciation and congratulations to our esteemed Board
and the entire team for their persistent support and guidance during these challenging
times. I am immensely grateful for their firm commitment and dedication. Moreover, I would
like to thank our shareholders for their firm belief in our Company's vision and
principles. Your support has played a crucial role in our journey towards success.
As we look ahead, I warmly welcome our business associates to join us on this
exhilarating journey of creating new possibilities and achieving progress. Together, we
will persist in our pursuit of excellence and forge ahead towards a future brimming with
growth and success.
Warm regards,
Kapil Garg
Managing Director