PACRA Assigns Initial Entity Ratings to Orient Energy Systems (Pvt) Limited

Orient Energy Systems (Pvt) limited (“the Company” or “OES”) entity ratings depict the Company’s notable history of providing power generation equipment, renewable energy solutions along with other industrial solutions and services. The Company’s diversified portfolio includes sale of imported supplies relating to power generation such as generators, solar panels, wind turbines, heavy machineries, lubricant oil and building services equipment along with providing after sale support to its customers. Being the authorized dealer of globally recognized manufacturers, OES holds a good reputation in the market. Additionally, the Company is recognized as a reliable after sale service and spare parts provider. The sponsor’s commendable experience in the sector along with strong business acumen provides additional support to the assigned ratings. With rising trend of renewable energy solutions in the country, the Company has also branched out into providing wind and solar solutions to its customers. The team of qualified engineers provides engineering services including Installation, Testing, Commissioning, Operations and Maintenance, Repair, Troubleshooting, Overhauling and other Project Management services to its industrial customers. The Company reported Net Revenues of PKR ~6,271mln during nine month period ended March 2023 (FY22: PKR ~8,955, FY21: PKR ~7,815mln) with substantial portion from the sale and supplies of generators, solar panels, wind turbines and their spare parts. The Company has a significant market presence in the South region. The ongoing macro-economic conditions of the Country pose potential threat to the Company in terms of import of equipment and spare parts. However, through its well managed inventory levels along with diversification into providing turnkey solution and services, the Company has continued to support its operations. The amount of leverage in the Company’s capital structure stands at moderate level. In continuation to the prevailing economic conditions of the Country, the industrial growth is expected to further slowdown.
The ratings are dependent on the company’s ability to sustain its market share. Proactive management of business affairs with improved margins and coverages remains important for the ratings.

About the Entity
Orient Energy Systems (Pvt) Limited is one of the leading multinational engineering companies in Pakistan, engaged in distribution of internationally recognized power generation and industrial solutions and services with complete product support, engineering, operations and maintenance. The principal activity of the Company is commercial import, sales, indent and services of generator sets, compressors, earth moving machinery, industrial pumps, chilling plants, solar panels, including supply of spare parts, lubricant oil and EPC/Turnkey solutions. The Company is a 99.99% owned by ASJN Holding (Pvt) Limited while remaining is equally distributed amongst four friends who are also present on the board. Mr. Nasim Ahmed 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.