In conversation with Nirav Talati, CFO, Asian Energy Services Ltd

Looking at FY24, we are optimistic and confident about a turnaround, thanks to the acquisition of new contracts and improved execution of existing ones, expresses Nirav Talati, CFO, Asian Energy Services Ltd

Could you provide some insights into your Q4FY23 results?  

The company experienced a subpar performance in FY23 because of insufficient order inflow and delays in contract execution, which were beyond the company's control. However, looking ahead to FY24, we are optimistic and confident about a turnaround, thanks to the acquisition of new contracts and improved execution of existing ones.

The company recently announced securing orders worth Rs 78 crore for 3D Seismic Data Acquisition services from ONGC. Could you please elaborate on this development?

We are immensely proud to have secured this order for 3D Seismic Data Acquisition services from ONGC. After the current monsoon season concludes, we will begin executing this contract. In the second half of FY24, the contract's execution is anticipated to contribute significantly to the company's top and bottom line. Moreover, a substantial part of this contract is planned for execution in FY24. This win further establishes our leadership position in the sector and is also a testament to our firm commitment to the Oil & Gas sector.

Currently, what are the top three strategic priorities for your company?

Beyond seismic services, the company has recently increased the scope of its offerings. Three contracts for material handling plants and three for operations and maintenance services have been secured by the company. Our main focus will be to deliver and execute these contracts in hand efficiently and further expand our footprint in these new segments.

In addition to the ongoing ONGC contract, we have noticed a rise in orders for seismic services, and we are committed to securing further contracts in this line of business.

This year, the company has further expanded its business and acquired 50 per cent of PI in a producing field (Indrora, Gujarat). Given the potential of the Indrora field, we are determined to increase production. To expand further in this segment, we are also trying to add more contracts/assets to the oil and gas production vertical.

The company has disclosed its fundraising plans to the exchange, which involves issuing preferential warrants amounting to Rs 85 crore. What are the objectives behind this fundraising, and how do you plan to utilise the funds? 

The company has secured additional equity funding not only from the promoter but also from marquee investors to bolster its capital base and balance sheet to support its growth plans for the medium and long term. These funds will be used to expand the number of contracts and assets in our portfolio as well as to expedite the execution of existing order book/contracts.