Asian Energy Services is eyeing a turnover of over ₹450-500 crore in 2024-25 on the back of a strong order book. The company is also looking at operation and maintenance (O&M) projects in coal and minerals, and the oil and gas sectors.
With the focus of Coal India and the coal ministry towards mechanisation through coal handling and first-mile connectivity projects, the company decided to shift its focus to developing coal infrastructure.
This aided a turnaround with the company posting a net profit of ₹25.55 crore in FY24 from a loss of ₹44.44 crore in FY23. The company’s topline improved from ₹114.05 crore in FY23 to ₹311.28 crore in FY24.
“During Covid, we started expanding into building coal infrastructure. We realised there would be rapid expansion of coal in India to meet the energy requirements," said Kapil Garg, managing director, Asian Energy Services Limited.
"In FY21 India was producing around 700mt of coal per year and by FY30 the production is projected to reach about 1.5 billion tonnes. So the focus on coal has worked out well for us and will remain a growth driver in the coming years.”
The company’s total order book as of March 31, 2024, was ₹1,033 crore comprising third-party contracts from Coal India and Cairn Vedanta among others to be executed over two years.
Around 63 per cent of the order book was in the coal infrastructure sector covering projects in Chhattisgarh, Jharkhand and Telangana.
Around 33 per cent of the order book was in the operations and maintenance segment covering projects such as Suvali in Gujarat for Vedanta, Amguri in Assam for Oilmax Energy and PY-3 offshore in Tamil Nadu for Hardy Oil.
“For FY25 we are looking to do ₹450-500 crore in terms of revenue. We have the order book in hand to support growth and all projects are in the execution phase,” Garg said.
“Since we are confident in delivering coal handling plants, what we are now looking at is developing coal washeries and also exploring opportunities in the mineral mining segment,” he said.
“We are also seeing some movement for outsourcing of O&M from oil majors and that is also an exciting business for us.”
Oilmax Energy is the parent company of Asian with a 62 per cent stake. It has four oil fields: three in Assam (Amguri, Duarmara, Tiphuk) and one in Gujarat (Indora) and 1 CBM (coal bed methane) field.
The company is also looking to step up exploration and production from its oilfields.
“In Indora we are looking to ramp up production. We are hopeful of getting the environmental clearance before the end of the year. In Amguri, production is going well and we can ramp up more once connected with the Indradhanush gas network."
"At Duarmara, we have recently got the environmental clearance. We are hoping to start drilling by December or January and hopefully start gas production from June.”
