AI assistant
ASIAN ENERGY SERVICES LTD — Call Transcript 2025
May 23, 2025
60865_rns_2025-05-23_6a7a6dd3-3463-4610-b27d-8f4c681412b5.pdf
Call Transcript
Open in viewerOpens in your device viewer
==> picture [140 x 59] intentionally omitted <==
Date: 23[rd] May, 2025
To, To, The Listing Department, The Listing Department, BSE Limited, National Stock Exchange of India Limited, Floor 25, P. J. Towers, Exchange Plaza, Plot No. C/1, G Block, Bandra Dalal Street, Mumbai 400 001 Kurla Complex, Bandra (East), Mumbai 400 051 BSE Scrip Code: 530355 Trading Symbol: ASIANENE
Dear Sir / Madam,
Sub.: Transcript of the Earnings Conference Call for the Quarter and financial year ended March 31, 2025 of Asian Energy Services Limited (‘The Company’)
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that the transcript of the Group Earnings Conference call for the quarter and financial year ended March 31, 2025, held on Monday, May 19, 2025 is available on the website of the Company.
The transcripts can be accessed from the link given below: https://www.asianenergy.com/investor-relations.html
You are requested to take the same on record.
Yours faithfully,
For Asian Energy Services Limited
Digitally signed by SHWETA VAIBHAV JAIN DN: c=IN, postalCode=400610, st=MAHARASHTRA, SHWETA street=J1-402 ,LOK VRUKSH SOCIETY ,THANE,LOK UPVAN PHASE 1 ,400610, l=THANE, o=Personal, serialNumber=56c5e9a84d6ea07d8b7d8b40f8ddcea1e 5745468d66de91d2630c18ea0f6a7ad, VAIBHAV pseudonym=d3aa090d22ad4bbea602f0a3cc6301ed, 2.5.4.20=86067fcb0f78415af337649048ae40836ee537ce aa84d3b406cb831edcdd9eba, [email protected], cn=SHWETA JAIN VAIBHAV JAIN Date: 2025.05.23 18:35:37 +05'30' Shweta Jain Company Secretary and Compliance Officer Membership. No.: 23368
Encl: as above
Asian Energy Services Limited
CIN: L23200MH1992PLC318353
3B, 3[rd] Floor, Omkar Esquare, Chunabhatti Signal, Eastern Express Highway, Sion (East), Mumbai - 400022 Phone +91 (22) 42441100 Fax +91 (22) 42441120 E-mail:[email protected] Web:https://www.asianenergy.com
Source to Solutions
==> picture [107 x 70] intentionally omitted <==
“Asian Energy Services Limited
Q4 & FY25 Earnings Conference Call”
May 19, 2025
“E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 19[th] May 2025 will prevail.”
==> picture [69 x 44] intentionally omitted <==
==> picture [107 x 54] intentionally omitted <==
– – MANAGEMENT: DR. KAPIL GARG MANAGING DIRECTOR ASIAN ENERGY SERVICES LIMITED – MR. SUMIT MAHESHWARI GROUP CHIEF FINANCIAL – OFFICER ASIAN ENERGY SERVICES LIMITED – – MR. NIRAV TALATI CHIEF FINANCIAL OFFICER ASIAN ENERGY SERVICES LIMITED – SGA, INVESTOR RELATIONS ADVISORS ASIAN ENERGY SERVICES LIMITED
Page 1 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Moderator:
Ladies and gentlemen, good day, and welcome to the Asian Energy Services Limited Q4 and FY '25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone.
I now hand the conference over to Dr. Kapil Garg, Managing Director. Thank you, and over to you, sir.
Kapil Garg:
Thank you. Good afternoon, everyone. I welcome you all to Q4 and FY '25 Earnings Conference Call. Along with me, we have on the call Mr. Sumit Maheshwari, who is the Group CFO; Mr. Nirav Talati, the CFO for Asian Energy Services; and SGA, our Investor Relations Advisors. I hope everyone had a chance to go through the financial results, press release and investor presentation uploaded on the exchange and our company website.
As we begin, it's important to acknowledge the favourable macroeconomic environment that continues to shape the energy infrastructure sectors, both globally and domestically. The global oil and gas industry is projected to exceed $9.8 trillion by 2029, driven by increasing exploration activity, digital adoption and the push for cleaner technologies.
In India, the government has laid out a clear road map to expand coal-based power generation by 80 gigawatt, targeting a total of 300 gigawatt by 2031-'32, to meet rising electricity demand. Domestic coal market is expected to grow from about 1 billion tons in 2025 to about 1.5 billion tons by 2030, reflecting a strong CAGR of 7.5%, supported by continued industrialization and infrastructure expansion.
Despite the global energy transition, coal and hydrocarbons are expected to remain critical to the energy mix in the near to medium-term. At Asian Energy Services, we are well positioned to capitalize on these evolving opportunities, leveraging our proven execution capabilities, diversified service offerings and expanding presence across high-growth domestic and international markets.
Now let me walk you through our financial performance highlights for the fiscal year. FY '25 has truly been a milestone year for Asian Energy Services, highlighting the strength of our diversified business model and operational capabilities. I'm pleased to share that we concluded the year with total revenue of INR465 crores, marking a strong 52% growth over FY '24 and successfully meeting the guidance we had set last year.
This remarkable performance shows our effective execution across core business segments and our continued ability to scale operations efficiently. Looking ahead, we remain optimistic with our guidance for FY '26. Excluding revenue from the Kuiper Group, which will be recognized post acquisition, we expect revenues in the range of INR650 crores to INR700 crores, reflecting a robust year-on-year growth of 40% to 50%.
Page 2 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
EBITDA is also projected to rise to INR110 crores to INR120 crores, indicating a 52% to 66% increase, while profit after tax is expected to grow by 66% to 78%, reaching between INR70 crores to INR75 crores. These projections are backed by a strong order book of INR973 crores, a focus on long-term O&M contracts that ensure stable cash flows and a healthy pipeline of new orders.
Margin expansion will be driven by improved profitability and cash flow alongside strong execution in CSG project and sustained contribution from O&M services. Our Oil and Gas Services segment delivered steady performance, supported by the strong execution of seismic survey and production facility O&M contracts.
Meanwhile, our mineral and other Energy services segment, particularly the EPC work in coal handling infrastructure continued to be the key growth drivers with accelerated execution and improved site level productivity. To further accelerate our growth momentum, we are happy to report that in FY '25, we successfully raised INR157 crores through the issuance of preferential warrants. This capital infusion has further strengthened our sound financial foundation, enhancing our flexibility to allocate resources towards future growth opportunities.
I'm pleased to share a key strategic development in our growth journey. The acquisition of 100% stake in Kuiper Group, which is based out of UAE from private equity firm Gulf Capital for a total consideration of USD9.25 million in an all-cash transaction. Kuiper Group is a globally reputed provider of integrated manpower solutions tailored for the energy sector with a strong operational performance across the Middle East and Southeast Asia, including critical energy markets such as Saudi Arabia, Qatar and the UAE.
With revenues of approximately USD68 million in the year ending December 2024 and a proven track record of profitability, Kuiper brings deep industry expertise and a highly experienced management team that will help us with the transition in post-business acquisition. The acquisition is expected to be completed by the end of June this year. This strategic move is aligned with our long-term vision to expand our integrated operation and maintenance capabilities, diversify our service offering and scale our global presence.
By leveraging Kuiper's established platform, we are positioning Asian Energy Services to access a large addressable market, drive sustainable growth. As part of our ongoing focus on long-term value creation, we proposed to establish an ESOP pool amounting to 2% of the equity capital aimed at strengthening alignment with key talent and reinforcing their commitment to the company's growth journey.
In addition, in recognition of our strong financial and operational performance in FY '25, we are pleased to propose a dividend of INR1 per share, subject to shareholders' approval. This reflects our commitment to rewarding shareholders, while maintaining sufficient capital to support future growth initiatives.
Now I hand over the call to Mr. Sumit Maheshwari, our Group CFO, to talk about the financials.
Page 3 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Sumit Maheshwari:
Thank you, Kapil sir. Good afternoon, everyone. Talking about FY '25 financial performance, we delivered a robust performance in FY '25 with revenue from operations reaching INR465 crores, marking a 52% growth over FY '24. Our EBITDA for the year stood at INR72.3 crores, reflecting a 67% year-on-year increase, with EBITDA margin expanding to 15.5% compared to 14.2% last year. Profit after tax rose to INR42.2 crores in FY '25, a 65% increase over INR25.5 crores in FY '24, with PAT margin expanding from 8.4% to 9.1%.
Moving to Q4 FY '25 financial performance. In Q4 FY '25, we recorded our highest ever quarterly revenue of INR215.4 crores, an 81% increase over Q4 FY '24 and 135% growth sequentially. EBITDA for the quarter stood at INR33.7 crores, up 35% Y-o-Y with an EBITDA margin of 15.6%. PAT reached INR22.6 crores in Q4 FY '25, a 54% increase Y-o-Y and 174% sequentially increase from our last quarter, with a PAT margin of 10.5%.
Moving towards the business segments. For the oil & gas segment in Q4 FY '25, revenue stood at INR106.4 crores with an EBITDA of INR100 crores. (Wrongly said, this should be read as, EBITDA of INR11.0 crores) And for FY '25, revenue totalled at INR192.4 crores and EBITDA reached at INR33.1 crores. In the mineral & other Energy segment, Q4 FY '25 revenue amounted to INR109.1 crores, with EBITDA of INR26.0 crores. For FY '25, revenue was INR272.6 crores and EBITDA came in at INR58.9 crores.
With this, we would like to open the floor for questions and answers. Thank you.
Moderator:
Siddharth Chauhan:
Sumit Maheshwari:
Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Siddharth Chauhan from B&K Securities. You may proceed.
First of all, congratulations on great set of numbers. I have two questions. One is in our Minerals segment; we haven't seen order flow in quite some time now. So, can you throw some light on what is the situation in terms of new orders or new tenders for coal handling plants? And how should we look going forward?
Regarding definitely, yes, in last 6 months, there was definitely a slowdown into the tendering activities also, which has led to some slow order inflow for us also. We had not participated into too much of tenders as the tender’s activity was very low. But now the tendering activities has picked up recently. We have submitted a bid for a large tender, which we are expecting to open sometime in near future.
And there's a clear sight of few tenders which were we interested, which will be coming up in next 2, 3 months. There are three specific tenders which we have been eyeing from last 6 month, and we have been targeting those tender. So, we are expecting those tenders bid to come in next couple of weeks, and we'll be participating in those tender.
So definitely, we remain optimistic, and we are quite confident that with the new set of tenders coming in, we'll be able to fill up our order book again for the CHP segment. And apart from that, in generally, we are seeing a lot of activities in the CHP segment with the new commercial mines getting allotted and their environmental clearances and every things are getting done. So,
Page 4 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
we definitely see from August, September onwards, the tendering activity, which was definitely slowed down in previous couple of quarters, will again pick up.
Siddharth Chauhan: Understood. And lastly, sir, what is the value of Kuiper Group's current order book? If you can throw some light on that?
Sumit Maheshwari: So, Kuiper Group is not into a typical EPC type of the business order book. They have a longterm master services agreement and long-term commitment with their key client, and they are especially into O&M business. So, they have a contracts ranging from 2 years, 3 years, 5 years, a longer duration, and they have been serving to their clients under those master services agreement from last between 5 to 10 year.
So, even if you have to talk in terms of some different, not in terms of the order book, in terms of the revenue coverage, they have at least minimum 2 to 3 years of revenue coverage in their existing contracts, what they've been doing roughly around, as Kapil sir mentioned, $68 million revenue they did in calendar year 2024. So, they have a minimum 2 to 3 years of coverage for this revenue for next year, for coming years.
Siddharth Chauhan: Understood. And how are the margins over there in terms of EBITDA margin? Sumit Maheshwari: EBITDA margins are roughly around 8% to 9% current level of EBITDA margins, and we do definitely see good scope in improvement of those margins. As we told you that acquisition is likely to be completed by June. So once the acquisition is completed, then we'll definitely come up with our entire plan and how we want to do and what is our plan to increase the EBITDA margins and integrate Kuiper business with Asian. Siddharth Chauhan: Perfect. Thank you so much Sumit ji and congratulations and all the best. Going forward. Moderator: Thank you. The next question is from the line of Vignesh Iyer from Sequent Investment. You may proceed. Vignesh Iyer: Thank you for the opportunity. So, my first question is relating to the acquisition you have done. Wanted to understand the idea behind acquisition, what kind of synergy can we see coming into play having done this acquisition. If you can elaborate few things on that? Kapil Garg: I mean the main rationale behind the acquisition of Kuiper is a good business in any way. But we are looking to expand the portfolio of our operation and maintenance services, which we are right now providing in India to different clients. We want to use Kuiper as a base and then grow the operation and maintenance business in the key energy market, as I mentioned earlier, in Qatar, Saudi Arabia and Middle East. That is the intent to try and expand the business using the current Kuiper’s strength.
Vignesh Iyer: But that company is not entirely O&M, right, not like something what we do at present. It's a bit different, right?
Page 5 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Kapil Garg:
Correct, for that what we want to leverage on this strength and then build on those strength in providing our services. For example, in Qatar, they already have an established business. So, when we, as an Asian Energy who are going to Qatar, we were not present in the Middle East. That fact was getting noticed there.
So, this platform allows us to leverage on their current strengths and they have operational companies in Qatar and offices and people working there. So, we can build on that and offer our packaged services now.
Vignesh Iyer: So, you get a ready market to, I mean, cross-sell your current expertise?
Kapil Garg: Correct, I mean it provides us access to that market through that platform.
Vignesh Iyer: Got it. Also coming to your revenue guidance for the next year, what I see from our order book right now is, I mean, if I take infra and seismic activities, that comes around INR425 crores and O&M, which is probably for next few years, if I understand it right. So just wanted to know, I mean, what kind of order size are we expecting in this year?
Because if I calculate it correctly, there would be a decent size of execution that we would be doing in the current year, which would relate to the new order inflow that is coming. So, if you could give us some flavour on that?
Sumit Maheshwari: So, in terms of the guidance which we are providing for FY '26, -is between INR650 crores to INR700 crores, our current order book is almost covering roughly around 70% to 75% of the guidance what we have been providing. And as we told you that now the tender opportunities are coming, and we have been working for new tenders.
So, we do expect the new tender inflow, which will provide the balance 30% of our revenue, which we are working on. In fact, there's good amount of traction and the tendering activities is expected in the seismic segment also. We already spoke about the CHP segment. And in the operation and maintenance segment also, we are seeing some good tenders coming up. So, we are quite confident of not only building up the balance order book, which we will be able to deliver our FY '26 guidance but also building up our order book for the coming years also.
Vignesh Iyer: Okay. Got it. Just one last question from my side. I wanted to understand, what is the debt in the books of Kuiper Group that we have acquired?
Sumit Maheshwari:
It's a zero-debt company. We are getting this company at on the cash-free and debt-free basis. So, it's a zero-debt company. In fact, the current assets which we have been getting along with the acquisition, which is -above than our acquisition price. So, we are actually -- virtually, we'll be getting this company free along with the current asset and it is a debt-free business.
Vignesh Iyer:
Okay. Got the point. I will probably get back in the queue. Thank you.
Page 6 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Moderator: Thank you. The next question is from the line of Deepak Rawat, an Individual Investor. You may proceed. Deepak Rawat: So, what kind of profit margin does the Kuiper having? Sumit Maheshwari: See, we discussed about that. Currently Kuiper business, they are having EBITDA margins of roughly around 8% to 9%, and they are a debt-free company. So that is the current number. And as we told you, once we complete the acquisition, then we have our own plan of expanding the Kuiper business, improving their margins and everything. We'll come back with our guidance in terms of the Kuiper numbers and their profitability numbers once the acquisition is complete. Deepak Rawat: Okay. And sir, in the press release that you posted on 18th April, the turnover of Kuiper is decreasing, I mean, from in 2022, the turnover was INR82 crores, (Wrongly said, this should be read as, USD82 million) but now it has come down to INR68 crores. (Wrongly said, this should be read as, USD68 million) So, what was the reason? Can you please elaborate? Sumit Maheshwari: Okay. So, we have acquired the Kuiper business, which is a Middle East and Southeast Asia. The overall Kuiper business comprises, including Australia and New Zealand business also. And yes, definitely, the business has remained stable for the entity which we have acquired between $70 million to $75 million per annum. And definitely, the last year, there was some dip into the Kuiper business turnover because Saudi Arabia has de-hired some offshore assets and have slowed down some offshore projects, which has led to the temporary dip into the numbers in the last year. This year, whatever we have seen, the numbers have again started picking up.
Deepak Rawat: Okay. So, you are planning to grow basically the revenue from USD 68 million to again, I mean, USD82 million to USD 100 million. That would be the plan, I think. Sumit Maheshwari: Yes. We'll come back on that. Once the acquisition is complete, we'll come back on that, what is our plan and how do we want to grow the Kuiper business. Deepak Rawat: Okay. And sir, one question on the receivable part. So, the trade receivable has increased from INR135 crores to INR224 crores this financial year. So, what was the reason behind this increase?
Sumit Maheshwari: Yes. We'll come back on that. Once the acquisition is complete, we'll come back on that, what is our plan and how do we want to grow the Kuiper business.
Sumit Maheshwari: Yes. So, if you see the last quarter, we have recorded the revenue of INR215 crores, so that has led to -- so in FY '24, the trade receivables was roughly around INR135 crores, which has gone up to INR224 crores. That's largely on account of the heightened activities, which has happened into the Q4, which has led to the increase into the debtor. And you remember, we have talked about some retention money.
So whatever business we have been doing in the CHP business, certain amount gets added to the retention, which adds to the debtors and which will get released only at the completion of those projects. So that has led to increase into the debtor. But out of that INR215 crore, almost INR150
Page 7 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
crore of debtors are less than 90 days. So, it's not like that these are very old debtors, is a flowing regular business debtors.
Deepak Rawat: Okay. And sir, one last question on the order book. So out of this INR973 crores order book, what is the order book from Oil & Gas sector?
Sumit Maheshwari: One second, order book from oil & gas sector. Deepak Rawat: Yes, out of this INR973 crores.
Sumit Maheshwari: Could you give me a moment? I'll just get back to you when I answer the next question. But it's roughly around order book from Oil & Gas segment is roughly around 50% of the overall order book of INR973 crores. I'll give you the exact numbers.
Deepak Rawat: And the remaining will be from, I think, coal handling plant, right or and the seismic activity, correct?
Sumit Maheshwari: Yes. Deepak Rawat: Okay, sir. That’s all from my side. Moderator: Thank you. The next question is from the line of Ravi Shah from VRS Capital. You may proceed. Ravi Shah: Yes. So, I have three questions basically. So, can you give us an update on the coal handling plant business and how many projects have been successfully executed during the year from our order book?
Sumit Maheshwari: So, we have been currently executing six coal handling projects. And in the last year, we have done almost -- you must have seen the breakup of our segment. So, the entire Mineral segment business contributes to the coal handling project. Out of the 6 projects we have been currently doing, three projects are likely to be completed into this financial year, two projects by September, October, we'll be completing and 1 project by December.
So those three projects are likely to be completed into this financial year and the balance 3 projects will get completed into the next financial year.
Ravi Shah: Understood, sir. Sir, my second question was on our preferential warrants, which we had raised on INR157 crores. So how much money have we received as of date so far? And how do you plan to use it going forward?
Sumit Maheshwari:
Yes. So, we have received INR39 crores out of that INR157 crores, which is a 25% subscription, warrant subscription money. And some part of that money, we intend to use for our acquisition of Kuiper and some part of the money we will be using into our normal business working capital and those things. But currently, that money has not been utilized.
Page 8 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
The entire money which we have raised is, we have sufficiently funded, and our debtor’s realization and our cash flows remains very robust. So that money currently, we have not used. But some part, we intend to utilize to part fund Kuiper acquisition and some part for other intended purposes, which we have mentioned at the time of warrant issuance.
Ravi Shah: Understood sir. Sir, my last question would be, could you comment on the current leverage position of the company. So how do you plan to maintain a healthy capital structure as you scale up our business after the acquisition?
Sumit Maheshwari:
So, as you must have seen, we are a positive cash company. After excluding whatever the shortterm debt we have, we have roughly around INR80 crores of net cash and bank balances. And our cash flow and our business model remain very robust. We will be using some project-specific debt just to make sure that we are able to utilize our equity and our resources much better. Otherwise, we continue to remain and we continue to operate in a position where our leverages are very, very low. And whatever the leverage we take has to be very project-specific leverage.
Ravi Shah: Understood. Thank you so much and all the best.
Moderator: Thank you. The next question is from the line of Shaurya Yadav from PinPointX Capital. You may proceed.
Shaurya Yadav: Sir, I just want to understand that what was the reason that PE Fund has sold Kuiper only to get exit from investment or something else?
Sumit Maheshwari: So, the Gulf Capital, the PE Fund, which was owning the Kuiper -- their fund is getting closed. So, this is the last investment they had and the hard stop date where they have to return all the money is somewhere -roughly around June 2026. So that is the last investment. That's why they have sold this investment. They bought this business in 2012, '13.
Shaurya Yadav: Okay. Sir, just to get exit from the investment, right?
Sumit Maheshwari: Yes, that remains their last investment into that particular fund, and that fund is at a statutory time limit of closure, including their whatever the permissible extensions.
Shaurya Yadav: And sir, what will be the size of order that we are expecting in coming month?
Sumit Maheshwari: See, as I told you that the tendering activity for our, all the 3 business segments, CHP, Seismic and O&M look very robust. And like in the CHP also, the type of order and size of orders which we have been now participating are roughly around INR400 crores to INR600 crores.
And there are a couple of good large seismic tenders also into the pipeline. So, it depends on how this particular tendering activities which we are doing transfer into our order book. We remain quite confident that we'll be able to build up our order book very significantly, which helps us the momentum and the growth trajectory which we have been projecting.
Page 9 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Shaurya Yadav: Okay, sir. And sir, from September onwards, there was some slowdown in the sector. Can you please tell me the exact reason for slowdown like...
Sumit Maheshwari: So, it was a more of a temporary blip, which had come into that particular sector where the overall tendering activities post September till January, February, there was a temporary blip for 4, 5 months where not too much of tendering activity has happened. But now with what we have seen in last 1 month, the tendering activities have again started, and we are seeing lot of new RFP, request for proposals have been floated. So, there was a temporary blip for a couple of quarters, which now seems getting back into the good activity mode. Shaurya Yadav: Okay. And sir, have you just onboarded some new clients because you mentioned in our investor presentation serving by industry major section? Sumit Maheshwari: Yes. So, as you may be aware, we have received one O&M contract of compression on the boot basis from AGCL. So that is the new client we have onboarded. Then we have been working with Invenire energy, and Hardy, which are our new client for operation & metal segment. Apart from that, Vedanta Oil India, ONGC, Coal India and Coal India's various affiliates and subsidiaries continue to remain our client. And in this particular year, we have added a very significant client, another significant client, which is Sun Petro. So, they are also one of the very largest private sector oil and gas company, and we have been doing seismic work for them. So definitely, in this particular year, we have added three, four new client for us. Shaurya Yadav: Thank you, sir and all the best. Moderator: Thank you. The next question is from the line of Pritesh Chheda from Lucky Investment. You may proceed. Pritesh Chheda: Sir, in the revenue forecast for FY '26, how much is linked to the backlog that you have today? So out of that, how much will be the execution of that backlog? Sumit Maheshwari: Roughly around 75%. As I mentioned earlier, out of that, our guidance of INR650 crores to INR700 crores, roughly between 70% to 75% is coming from the existing order book. Pritesh Chheda: Okay. And within the Oil & Gas revenue that you have called out this year at INR192 crores, how much would be seismic in this? Sumit Maheshwari: Yes, I'll give you the number. Seismic is INR72 crores. Out of that INR465 crores of turnover, seismic we have done this year is roughly around INR72 crores. Pritesh Chheda: This would have been growing or flat, what it would be versus INR72 crores versus? Sumit Maheshwari: So last year, we have done roughly around INR120 crores. So, this year, it has slowed down. But with -- we have been seeing new tendering activity, specifically in the area where we
Page 10 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
operate, there are good amount of tender and a couple of large tenders have been lined up. So, we expect that we should be able to reach back to the last year numbers in the seismic again.
Pritesh Chheda:
And in the INR965 crores backlog, how much is seismic?
Sumit Maheshwari:
Yes, I'll give you the breakup of that. Out of the INR974 crores (Wrongly said, this should be read as, INR 973 crores) of the overall order book, seismic is roughly around INR74 crores. And the overall Oil & Gas is 64% of our order backlog, Infra is INR350 crores, which is roughly around 36% of our order backlog and seismic is INR74 crores, which is roughly around 8% of our order backlog.
Pritesh Chheda:
Okay, sir. Thank you.
Moderator: Thank you. The next question is from the line of Ankur Gulati from Genuity Capital. You may proceed. Ankur Gulati: Just a quick question on the debtor’s profile, there is quite a lot of jump in receivables. Can you give us more color on that, please?
Sumit Maheshwari: Yes. So, as I already answered about the receivables, our receivables have -- last year, it was INR136 crores. It has gone up to INR224 crores. So, there's INR87 crores of increase in receivables as compared to the last year. Out of that, almost INR60 crores of receivable increase has come into the CHP business segment and INR25 crores of receivables have gone up into our oil & gas business segment.
Out of that INR224 crores of the overall receivables, roughly around INR55 crores of receivables pertains to retention, which will release -- some part will get released in FY '26. As I mentioned that we'll be completing 3 projects into this year and some part will get released into the next year.
And roughly around out of INR224 crores, INR150 crores of receivables are less than 90 days and INR55 crores of receivables which is the retention, which doesn't come with the aging. So more than 90 days receivables are only INR14 crores. So, our receivables are quite current and very robust receivables.
Ankur Gulati:
So just rolling forward, this, whatever revenue guidance you are giving, should we work that 10% of that will get retained at the end of the year?
Sumit Maheshwari:
No. So, I would like to highlight one particular point to you. So last year, we had a retention amount of roughly around INR23 crores - INR24 crores, which has gone up to INR55 crores. So INR465 crores of revenue we have done. And out of that, the CHP coal handling plant, where the majority of the receivable goes, we have done roughly around INR270 crores of that particular business and only INR30 crores has been added into the receivable.
Page 11 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
So, we do not see that receivable -- the retentions are going up into the similar ratio. And as I explained to you, in FY '26, we are expecting roughly around INR30 crores of odd retention money to get released, as we will be completing three projects into this year. So, the retention profile is likely to remain the same.
Ankur Gulati:
This INR220-odd crores receivable will not be pro rata increase, right, just from a financial modelling perspective?
Sumit Maheshwari:
Yes. And again, there will be a release of the previously held retentions also. So, it will not increase into the pro rata proportionate basis than our revenue and top line.
Ankur Gulati: And if I look at year-on-year for this reported quarter, any specific reason for a decline in the margins? I'm looking at profit before tax and before JV interest.
Sumit Maheshwari:
Yes. So, if you see our -- the commentary, in the Q4 FY '25, our oil & gas segment had revenue of INR106.4 crores, with an EBITDA of INR11 crores. So, in one of our particular project where part of the project has been done into the Q4, there has been the cost escalation. So, in the Oil & Gas segment, that's the reason the margin for the Q4 specifically in the oil & gas segment has slightly tapered off.
Now the project is going to get completed into the Q1, and we are already in discussion with our client for recovery of those cost escalation. So that is one particular project where because of the delay in execution and the cost escalation, the margins have compressed for the last quarter.
And we are quite hopeful that with our discussion with the client, and the way the discussions are progressing, we will recover those money into this year. So that's the reason for the drop into the margin in Q4 for a specific project.
Ankur Gulati: And this cost escalation is because of material or currency movement or what commodity price move?
Sumit Maheshwari:
No, it's not because -- this is a pure, pure services project. So, this project was supposed to get executed into the Q1, Q2, as you remember and last time also, we have provided you that the project is starting into the Q4. But because of some inordinate delay because of the unfavourable weather and other issues, which were beyond our control, there has been some cost escalation, and clients have also noted and recorded.
And in the Q4 in the audited accounts, we have not recognized any cost escalation, which we expect to receive reimbursement of cost escalation from the client, which we have not recognized into the Q4. That has led to the drop into the margins in the Q4. And the way -- as I told you, the project is likely to get completed in Q1 of FY '26. And once the project is completed, we are already into discussion with our client, and we remain hopeful that we should be able to get the cost escalation back.
And if you can share the amount of claim which we have made on this account?
Ankur Gulati:
Page 12 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Sumit Maheshwari: Slightly confidential, I would not like to mention on this claim amount and everything on the call. But one thing we can tell you, the EBITDA guidance, which we have provided for the next year, that particular cost escalation is not part of that. So, whatever the amount which we are able to receive from our client and settle with the client will increase our margins. Ankur Gulati: So, the 3% dip that we are seeing in margin that will be recovered as and when this claim is settled, right? And that's top of whatever EBITDA guidance you have given for next year? Sumit Maheshwari: Yes. Ankur Gulati: And is there any similar issue in any of these existing contracts that you are executing, which may have some sort of a push out of margin? Sumit Maheshwari: No. So, most of our projects, which are the EPC projects, they have a defined milestone billing and the cost to completion method only in this particular project, where because of the delay, the project has pushed from Q4 to Q1. And hence, in terms of the conservative accounting method, we have recorded only the cost, and we have not recorded any cost escalation, which we going to receive from the client into the Q4. Ankur Gulati: All right. So just one request if this claim gets settled before your quarterly results, it will really help if you can make an exchange disclosure with respect to that? Sumit Maheshwari: Yes, definitely. As soon as we see something on that particular front, depends on the materiality threshold and on those guidance, we will definitely make a disclosure to all the shareholders. Ankur Gulati: Okay. All the best. Thank you. Moderator: Thank you. The next question is from the line of from Raj Sarraf from Finvesto. You may proceed.
Raj Sarraf: Sir, congratulations on the great execution in the Q4. Just wanted to understand that, is there any seasonality in execution like quarter wise or from now onwards, we can see a secular growth quarter-by-quarter? Just please give a brief on that.
Sumit Maheshwari: Yes, definitely, the Q4 for this year has been -- the last year, the Q4 has been very, very heavy as compared to the other quarter. Being into the business of seismic, infra, where we've been always settled with some weather-related issues and everything, we do not see all the four quarters remain to be into the same trajectory.
I would rather request you to look from Y-o-Y growth as against comparing from the Q-on-Q. But the way we are more focusing on the O&M business, which provides us a stable revenue on a monthly basis. And with the acquisition of the Kuiper, once we get completed, we'll see less cyclicality into our quarterly revenue also. And hopefully, the trend will stabilize. But definitely, there will be some seasonality of quarter-on-quarter basis going forward also. It cannot be eliminated fully.
Page 13 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Raj Sarraf:
Okay. Great, sir. And sir, after acquisition of what we are talking about, though it is very premature to ask, but if you can give a picture of what kind of EBITDA margin on a company level we can expect with the acquisition?
Sumit Maheshwari: See, currently on the Asian standalone business without Kuiper, we have given a guidance of EBITDA margins of roughly around 17%, 17.5% for the next year. And once the Kuiper acquisition gets completed June, July, we'll come back with the EBITDA guidance and the overall guidance again, including the numbers of the Kuiper, and we'll provide you some flavour how does overall numbers, both PAT and EBITDA and everything will look after the Kuiper is being integrated. Raj Sarraf: Okay. So just to confirm, sir, you've given the some numbers of new acquisition like EBITDA margin of 8%, 9%, am I right, sir?
Sumit Maheshwari: Yes. So, their current EBITDA margins is roughly around 8% to 9%, which they've been doing. Raj Sarraf: Yes, without any debt? Sumit Maheshwari: Yes. Our acquisition is on debt-free basis. Raj Sarraf: Okay. Thank you very much, sir. Congratulations and wish you best of luck. Moderator: Thank you. The next question is from the line of Amit Agicha from HG Hawa. You may proceed. Amit Agicha: Thank you for the opportunity and congratulations for a good set of numbers and for the acquisition. Sir, my question is like how concentrated is your current revenue base? Like is any single client accounting for more than 20% of the revenue?
Sumit Maheshwari: Okay. So, if we talk about Coal India because all our coal handling projects are with Coal India and their different associates and subsidiaries, then if you put all of them together, then definitely the concentration will be more than 20%. But if we talk about an individual contract, so out of the all individual contracts also, not a single contract comprises 20% of our overall order book. And in the last year also not a single customer comprises more than 20% of our revenue. And all these Coal India subsidiaries and their associates like Eastern Coal Field, Manandi Coal Field or Singareni Coal Fields, they are independent subsidiaries. They have their own systems; they have their own way of operating. So, they -- all these -- the Coal India operational subsidiaries are independent. So definitely, if we treat them independently, then there is no concentration of more than 20% with any of the client.
Kapil Garg: I would also like to add that our Board regularly reviews it to ensure that we do not have too much of concentration in a particular client. Amit Agicha: Second question, sir, what is the planned capex for FY '26?
Page 14 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Sumit Maheshwari:
In FY '26, there's one capex, which is definitely the acquisition of the Kuiper, which we have already informed. And as we told you, we have got one project of AGCL on the BOOT basis where some capex has already happened in the last year and some capex will happen into this year.
These are the two planned capex what we have right now. And it depends on what type of seismic activity and what type of seismic tendering happens. And if you are able to get some big seismic business and a profitable seismic tender, then there will be some incremental capex on the seismic to beef up our equipment base. Apart from that, there is no planned capex which we have for FY '26.
Amit Agicha: Sir, it would be really helpful if you could give some quantifiable number?
Sumit Maheshwari: Yes. So, as I told you, the Kuiper capex is a quantified number of $9.25 million. And AGCL, the project for BOOT where we have been incurring capex. So, some capex we have already incurred and some capex which we'll be incurring this year. The capex amount which we'll be incurring this year on that particular project will be between INR40 crores to INR45 crores.
And as we told you, this is a BOOT project. So whatever capex we will incur will get recovered within 3 years.
Amit Agicha: Okay. Thank you. All the best for the future. Moderator: Thank you. The next question is from the line of Soham from RV Investment. You may proceed. Soham: Thank you, sir. Just a quick question. What is the split we are looking in our guidance of INR650 crores to INR700 crores? Like how much of it should come from oil & gas segment and how much from Minerals & Energy segment we are looking?
Sumit Maheshwari: Yes. So, we are looking roughly around 50% - 50%, between 45% to 50% coming from our Infra segment and another 50% is coming from our oil & gas segment. That's what we have been looking in our guidance.
Soham: And what will be the margin difference in the segment? Sumit Maheshwari: See, your voice is breaking. I'm unable to hear. Moderator: Thank you. The next question is a follow-up question from the line of Ankur Gulati from Genuity Capital. You may proceed.
Ankur Gulati: Yes. So, there is some cash and bank balance of roughly INR78 crores. We are paying INR80 crores for the acquisition of INR84 crores. To meet the guidance, what kind of working capital funding will you need? And what are the sources to meet that requirement? If you can just help us?
Page 15 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Sumit Maheshwari:
So, for the Kuiper acquisition, we'll not be utilizing the entire cash and bank balances, what we have. So, we have already secured a 5 years loan acquisition funding. So, part of the funding will be done through that acquisition financing, which we have secured for a tenure of 5 years and the part will be utilized our cash and bank balances. And for meeting the working capital requirement, we have working capital limits lined up with the banks.
And as you may be aware, we have raised INR157 crores. Only INR38 crores, INR39 crores have been used so far. So, there's a almost undrawn amount of INR110 crores is also available there. So, we -- and with the robust debtor’s collection, we remain very liquid and our cash flows are very robust.
So, we do not see any additional requirement for any funds or any new additional working capital requirement for that particular business. And the Kuiper business, as we told you, is coming along with net asset in excess of our acquisition price. So, we do not see a huge requirement of funding the Kuiper business working capital.
And once the acquisition is complete, we get into the further detailing. And with our long-term growth plan of Kuiper, if any additional working capital or something are required, we intend to raise necessary working capital, utilizing the debtors, what Kuiper business have in their respective countries only.
Ankur Gulati:
Sumit Maheshwari:
Sir, just two follow-ups. Given the revenue guidance of INR650 crores, INR160 crores incremental revenue and, let's say, 180 days of debtors, you will need at least INR80 crores of debtors funding, right, which can be funded from different sources. But just want to understand that incremental debtor will be INR80 crores. Is that fair? If I work with the same 180 days debtor?
If you want to do the numbering on the ballpark number, then definitely INR60 crores to INR70 crores of debtors will get increased. But as I mentioned to you earlier also, there will be a retention release of roughly around INR25 crores to INR30 crores from the business. And with almost 50% of our business is coming from the oil & gas business, where the debtor cycle is much shorter than what we have a debtor cycle into the coal handling plant business.
On the arithmetic basis numbers, I don't think arithmetic basis numbers of extrapolating the revenue growth will give the right picture for the debtor. Yes, definitely, there will be some debtors increase the way we have been growing, but definitely not into the exact proportion of our revenue growth.
Ankur Gulati:
Sumit Maheshwari:
That's fair. And the second part was, there is unbilled or contract assets of INR86 crores. So, is there a corresponding liability something sitting on the liability side?
Yes. So, our current liabilities include. So, this is the accounting standard require you to do the projects based accounting on the cost to completion basis and whatever the liability you incur, you have to go into the unbilled revenue. So, the unbilled revenues related liabilities are definitely sitting into our current liabilities.
Page 16 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Ankur Gulati: So, against INR86 crores of unbilled revenue, how much is the liability and which head is it sitting in? Sumit Maheshwari: That will be definitely sitting into the standard sundry creditors only. I do not have those numbers handy right now. Maybe we can discuss on this particular. We can provide these details later to you through SGA. Ankur Gulati: That’s it. Fair to assume that... Moderator: We request you to join the queue again. Thank you. The next question is from the line of Shaurya Yadav from PinPointX Capital a follow-up question. You may proceed. Shaurya Yadav: Yes. Sir, what was the depreciation for Kuiper in FY '24? Sumit Maheshwari: See, we are acquiring the Kuiper on debt-free basis. And as we told you, the current assets which we will be getting with the Kuiper, which will be over and above what the acquisition price we will be paying. So, in our books, we do not see any depreciation will be coming of the Kuiper acquisition because there won't be any goodwill creation.
That's what we have been advised by our advisers that the net assets which we'll be getting along with the Kuiper business will exceed the acquisition price, which we'll be paying. So, there won't be any depreciation which will get recognized in our books. In terms of the Kuiper previous books, they had some depreciation, but that will become irrelevant for us because point forward, the depreciation in our books will get recognized based on our acquisition price and the net assets which we have been getting.
Shaurya Yadav: Okay, sir. Understood. Moderator: Thank you. The next question is from the line of Rahul, an Individual Investor. You may proceed. Rahul: Firstly, congratulations on a great set of numbers. My question was that, we purchased 50% participating interest in Indrora oil and gas field. And that has, I think, three clusters in it. And Indrora has already seen a good ramp-up in production. And Cambay and Mewad, I guess we are expecting it to be commercialized in FY '26. So, any updates on this? Sumit Maheshwari: Yes. So out of those two fields, we have received an environmental clearances for one of those field, which we intend to commercialize in FY '26. We have a plan to drill some wells and commercialize that. And for the Cambay field, we are still waiting for the clearances. And once the clearances comes, we will update everyone about our next plan for that field also. And Indrora field continue to remain operational, and we have a plan to further ramp up production in Indrora field also in FY '26.
Rahul: So, sir, any ballpark numbers of any additional revenue that we can expect from these fields, considering that they are 50% participating interest?
Page 17 of 18
Asian Energy Services Limited May 19, 2025
==> picture [63 x 40] intentionally omitted <==
Sumit Maheshwari:
Yes. So, as we told you, we have received environmental clearances for Indrora and we are waiting for Mewad field, (Wrongly said, this should be read as, we have received environmental clearances for Mewad and we are waiting for Indrora field), and we are waiting for a couple of more environmental clearances. And once we have all the clearances in picture, then we'll make a comprehensive plan to developing that particular field.
Once that is there, then it will be a appropriate time for us to provide some more concrete numbers and guidance because in absence of couple of clearances, it's difficult to put up a timeline and give any guidance for that particular number. So, we'll definitely -- whenever we interact next or through our corporate presentation or press release, we will update all the investors about our plan for Indrora cluster field going forward.
Rahul: Sure. Thank you so much for your answers. Thank you. Moderator: Thank you. The next question is a follow-up question from the line of Amit Agicha from HG Hawa. Amit Agicha: One different question. Like what is one key insight you have discovered in the last 3 years or 5 years that is unique and critical to understanding your business? Kapil Garg: There have been a lot of learnings in last 3 years. But if you ask me any particular one, I mean this came as a positive surprise to us, as I mentioned earlier, about the coal business. I mean, 3 years back, everybody was writing off hydrocarbon coal business and we took this contra call that India will need a lot of coal to meet the power requirement. So that has been a pretty good thing, which has happened to us. Amit Agicha: Thank you, sir and all the best for the future. Moderator: Thank you. Due to time constraint, that was the last question. I now hand the conference over to the management for the closing comments. Thank you, and over to you, sir. Kapil Garg: Thank you, everyone, for taking the time out and joining the call. I hope we have been able to answer all your questions satisfactorily. However, if you need further clarification or want to know more about the company, please get in touch with SGA team, our Investor Relations Advisors. Thank you and have a great day. Moderator: Thank you. On behalf of Asia Energy Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Page 18 of 18