Orient Energy Systems (Pvt.) Limited (OES) or “the Company” was incorporated on 28th November 2007 as a private limited Company under the Companies Ordinance, 1984. The registered office of the Company is situated at Plot # 9, Sector 24, Korangi Industrial Area, Karachi.

OES took over the business from Orient Energy Systems on 1st July 2010 and acquired all assets and liabilities of the firm at book value. Orient Energy Systems was a Partnership Firm, formed in 1996 by five partners with an objective to carry out the business of sales and services of generator sets and allied equipment. In March 2015, a holding Company ASJN Holdings (Pvt.) Limited (ASJN) was formed with an initial paid-up capital of PKR 1 billion. Entire shareholding of OES was transferred to ASJN.

The Company is one of the leading multinational engineering companies in Pakistan, engaged in commercial import, sales, indent and services of generator sets, compressors, earth moving machinery, industrial pumps, chilling plants, solar panels and batteries along with supply of spare parts, lubricant oil, EPC and turnkey solutions.

After corporate restructuring of OES that took place in 2015, majority stake is owned by ASJN Holdings (Pvt.) Limited (99.99%).

The owners of the Company have been involved in the business since 1996. Over the years the Company has expanded its business by offering world class equipment to the local industrial sector. The Company has built strong relationship with its customers by providing tailored services while being a trustworthy and reliable distributor of international well renowned manufacturers.

Apart from the owners proven history of operating in the sector, ASJN Holdings (Pvt.) Limited itself has branched out into other sectors to diversify its portfolio. The holding company has stake in subsidiary companies which are involved in the business of manufacturing and blending of Transformer/Insulating Oil and Lubricant Oils along with Rental Modaraba in the power sector.

The owners of the business have been operating in the industry since 1996 with their concentration towards providing diverse solutions to the country’s power sector. With time they have made investments in Orient Energy Systems, Orient Rental Mudaraba and Orient Oil Limited to diversify and expand their business portfolio. Being the overall solution provider to the power sector, the sponsors are committed towards expanding their footprint in the local industry and have strong willingness to provide financial support to their companies.

The board consists of 4 members, all of whom are nonexecutive directors and a CEO. The board members are close friends who initiated the business back in 1996.

All board members have been involved in the business since its inception and thus have vast experience of the business operations and the sector.

The board conducts regular meetings throughout the fiscal year to approve the financial statements of the reporting period. Furthermore, if required, matters relating to the Company’s operations along with other important matters are also discussed in the meetings. Proper board minutes are maintained by the Company which captures the agenda and all the discussion made during the board meeting. The Board strive to uphold high standards of Corporate Governance.

A proper MIS system is in place that generates monthly and quarterly financial reports. Annual financial statements are timely audited and are available to the shareholders. Yousuf Adil Chartered Accountants is the external auditor of the Company. The auditors have expressed an unqualified opinion for the unconsolidated financial statements of the Company for the year ended June 30, 2024.

The Company has a well formulated organizational structure with the presence of 4 divisions including Generators, Renewable Energy, Product Support & Services and other industrial solutions such as earth moving machineries, chilling plants, industrial pumps, lubricant oil etc. Each division is supported by sub departments including (i)Project Development, (ii)Procurement and Supply Chain, (iii)Engineering, (iv)Finance, (v)Information Technology, (vi)Human Resource and (vii)Compliance.

The senior management consists of personnel having vast prior experience in their respective fields along with required qualification. Majority of the senior management employees have been associated with the Company for a considerable time which ensures their vast knowledge and understanding of the Company’s operations. Mr. Teizoon Kisat is the CEO of the Company who is also amongst the shareholders. His experience is spread over a period of 30 years in the field of power generation, energy solutions, engineering, project management, contract management, legal management of cargo, containers, tankers etc. He is also the Group Chief Operating Officer, Mr. Teizoon Kisat is a fellow member of ICAP. He possesses a strong business and leadership record. He has remained associated with audit firms in Pakistan and overseas for 12 years. Later he joined the leasing industry of Pakistan and held many senior positions in multiple business areas. He joined OES in June 2020 and is responsible for overseeing operations of all group companies. Mr. Zafar Iqbal is appointed as the Director Sales and is leading multiple business units such as Gas and Diesel Generator, HVAC and Compressor. He has 24 years of diversified experience in the field of industrial and power generation sales. Mr. Mehdi Vazir holds the key position of Director Special projects and carries the responsibility of managing multiple divisions such as Renewable Energy, Transmission, Grid, Distribution, Fire Engineering and Pumping Solutions. He has been associated with OES since 2006. Mr. Naseem Alam is currently leading the engineering department in OES. He has professional expertise in Engineering Designs, Project Implementation, Civil and Construction Management and Engineering Consultancy Services. He has a cumulative experience of 27 years in the field of engineering. Mr. Muhammad Waseem's passion for the technical side of power generation has led him to specialize in Product Support and Technical Services. From pre-delivery inspection to commissioning, warrant handling to routine and scheduled maintenance and aftermarket sales of spares and services all comes under his domain. Mr. Zaki ul Haq is appointed as Director Engineering II and looks after exploring, development, delivering international EPC projects to overseas customers. He has vast experience in planning and management of power generation both on and off shore.

Each of the divisions and departments are headed by an experienced and qualified resource including electrical, mechanical and civil engineers. The senior management team is actively supervised and assisted by the board which conducts regular meetings with the Group CEO and divisional heads to ensure smooth functioning of each department.

The Company has deployed Microsoft Dynamics AX 2012 which is an Enterprise Resource Planning (ERP) software that provides tailored solution to the Company. It helps the management to meet their business requirements whether it be related to financial management, human capital management, procurement and sourcing, service management, sales and marketing, supply chain management, business intelligence or accounting and reporting.

The Company has established a Compliance department to ensure that the management is adhering to the Company’s policies and procedures. The board of directors also acts as an oversight function and is involved in the decision-making process to ensure service quality and smooth operations of the Company.

The Engineering and Technology services industry is a very niche sector that caters to a specific target market which includes infrastructure development projects including motorways, exploration and production sites, private sector projects including solar and wind power generation, different industrial sectors along with providing equipment to high scale projects including hyper malls, banks and hospitals etc. The industry is heavily dependent on import of equipment and spare parts. Thus, exposing the players to cyclicality, import restrictions and duties and foreign exchange risk.

Limited players compete in the industry due to the nature of the business and niche services. Major competitors include Allied Engineering & Services (Pvt.) Limited (Caterpillar), S.M. Jaffer & Co (FG Wilson), R.A Engineering & Services, Power Zone Engineering & Services (FPT and Perkins). In providing Engineering and Product Support services, the Company faces competition from Greaves Pakistan (Pvt.) Limited and Jaffer Group of Companies apart from the plyers mentioned above. Relative positioning in this type of industry is based on brand of equipment and customer relationship and loyalty. In manufacturing of diesel generators, Caterpillar is the global leading brand followed by Cummins. While in the gas gensets category, INNIO Jenbacher and Waukesha are the desirable brands. OES being the only authorized dealer of these manufacturers have an advantage over its peers.

As of 3QFY25, the Company reported Net Revenues of PKR 7,181mln (FY24: PKR 10,937mln). Sale from Product Support and Services along with Solar and Wind contributed to revenue. Remaining portion of the revenue comes from Services and Installation of equipment.

The Company’s Gross Profit Margins has decreased from 29.4% SPLY to 28.4% in 3QFY25, however, the revenue has increased when compared to FY24 revenue stated at 23.9%. It also increased to 2.1% in 3QFY25 as compared to 1.7% in SPLY.

The Company has an established market presence as a reliable and dependable power and industrial engineering solution provider. The Company and its sponsors are actively seeking future opportunities to expand their business portfolio in the power solution sector in order to sustain their market presence and operations in the country.

The company's working capital management is a function of its inventory management along with receivable and payable days. Receivables against sale of equipment and services stood at PKR 3,086 as of 3QFY25 which in turn contribute to high Gross Working Capital Days of 284 days as on March 2025. The Company manages its payables accordingly to report Net Working Capital days of 183 days for the same period.

As of June 2024, the Company’s interest coverage ratio (EBITDA/Finance Cost) stood at 2.8x, reflecting a slight moderation to 2.5x by 3QFY25. Nonetheless, this remains a notable improvement compared to the corresponding period last year, when the ratio was recorded at 2.0x, indicating a strengthened capacity to meet interest obligations through operating earnings. The Debt Payback Ratio stood at a low 0.6x as of June 2024, primarily attributable to elevated short-term borrowings undertaken to support working capital requirements. These borrowings are typically settled by year-end, as evidenced by the decline in short-term debt from PKR 2,598 million in March 2024 to PKR 1,680 million in June 2024, reflecting effective cash flow management.

The Company has a moderately leveraged structure as a result of borrowings to fund its receivable delays and imports. As of March 2025, the Company leveraging stood at 34.6% (March 2024: 44.8%) as a result of short term loans to meet the operational expenses.