Prism Energy (Private) Limited ("the Company" or "PEPL") was incorporated in Pakistan on June 25, 2019, as a private limited company under the Companies Act, 2017. The Company's registered office is located at Office # 208, Al-Qadir Heights, New Garden Town, Lahore. PEPL's primary business activity is investing in solar power equipment and offering turnkey renewable energy solutions. These solutions include the construction, processing, operation and maintenance, installation, and provision of ancillary services for renewable energy projects, catering to commercial and industrial clients.

PEPL's business model is further categorized into three categories, including (i) Power Purchase Agreement (PPA), (ii) Buyout model (BOOT), and (iii) Solar on cash (EPC mode). Under the PPA mode, the Company invests in solar equipment, engaging installers for the installation of solar equipment and selling solar-generated power to the site owner on an agreed tariff under a long-term agreement (10-15 years). Whereas under the BOOT mode, PEPL enters into a sale of equipment agreement with the customer and receives monthly payments to cover the cost of the plant. The tariff for the PPA mode and BOOT mode depends on the installed capacity of the project, including the total cost and tenure of the agreement.

The return on each project undertaken by the Company varies depending on the installed capacity, project cost, tariff structure, and tenure of the contracts.

PEPL has a strong ownership structure, with 95% of its shareholding held by InfraCo Pakistan Sunrise Pte Ltd (IPS), 4.98% by Albario Engineering (Private) Limited (AEPL), and a nominal 0.01% held by individuals Mr. Ahmad Najeeb and Mr. Sheikh Ibrahim Atif. IPS is a subsidiary of InfraCo Asia, whose mission is to catalyze private sector investment to help bridge the infrastructure gap in Asia’s emerging and frontier markets. AEPL offers comprehensive, one-window solutions in the fields of energy, industrial services, and infrastructure.

PEPL enjoys a stable ownership structure, with IPS, a subsidiary of InfraCo Asia, offering strong institutional support and AEPL contributing technical expertise. This ownership structure underpins PEPL’s operational stability and strategic direction.

PEPL Sponsors demonstrates exceptional business acumen through its strategic investment approach. By identifying high-potential opportunities and leveraging a comprehensive understanding of market trends, the sponsor excels at aligning with the right partners to create synergies that drive operational efficiency and growth. The data-driven decision-making prioritizes long-term value creation, ensuring sustainability and profitability. Meanwhile, InfraCo Asia contributes funding and expertise to mitigate risks in the early-stage development of socially responsible and sustainable infrastructure projects.

InfraCo Asia, the ultimate parent of PEPL, is funded by four sovereign governments—the UK, Switzerland, Australia, and the Netherlands—providing strong institutional backing that underscores its financial strength. Additionally, its financial health is supported by a substantial upfront equity injection, along with an explicit commitment to maintain ownership and provide financial support when needed, further highlighting the sponsor's strong financial position.

The PEPL Board of Directors (BoD) consists of five members, four represents InfraCo Asia and one represents Albario Engineering.

Mr. Ahmad Najeeb serves as director, representing AEPL. He is engineer by profession with over three decades of experience. Mr. Arooj Asghar, Ms. Claudine Lim Hsi-Yun, and Mr. Jesse Low Heng Chor are nominee directors of InfraCo Asia, each bringing more than 25 years of expertise. Ms. Claudine also serves on the board of InfraCo Asia, and prior to joining, she was responsible for investor relations at Temasek Holdings, a Singapore government-owned investment holding. Mr. Jesse also serves as the Director of Procurement at Marina Bay Sands Pte Ltd. Mr. Arooj Asghar, director and CEO of PEPL, has been with InfraCo Asia since April 2016, bringing over three decades of experience. He also serves as a director Markhor Hydro Holdings Pte Ltd and hydro project company of InfraCo Asia in Pakistan.

The board members approve all major decisions for PEPL, with full attendance from all members at each meeting throughout the year. The extensive experience of the board will guide the management in developing effective operational and financial policies. The board works collaboratively to ensure the smooth and effective monitoring of operations.

M/s BDO, Chartered Accountants, is the external auditor of the Company and has issued an unqualified opinion on the Company’s financial statements for the year ending June 2023. The audit for FY24 is currently in process. The Company maintains proper books of accounts as required under the relevant laws, reflecting fairness and transparency in its financial reporting.

PEPL has a well-defined organizational structure with seven departments: i), Finance and Administration, ii), Proposal and Design, iii), Business Development, iv), Execution, v), Operations, vi), Project and Contract, and vii), HSE & Environment. Each function is led by an experienced professional and supported by a qualified team.

The CEO, Mr. Arooj Asghar, leads the Company with over three decades of experience across various industries. The key management team includes Mr. Waqar Hassan Malik – Chief Operating & Technical Officer, Mr. Hassan Bilal - Head of Operations and Portfolio; Mr. Hammad Rafique - Head of O&M; and Mr. Zohaib Zafar - HSE specialist. Mr. Rafique and Mr. Zafar report to the Manager of Operations, while the other managers, including Mr. Abdul Wahab (Manager of Finance), a recent induction to the team, report directly to the CEO. Additionally, the Company has a team of approximately 20 qualified engineers and technicians.

The management control of the Company rests with InfraCo Asia, the major shareholder, and the Company adheres to the policies and procedures set by InfraCo Asia, strengthening the effectiveness of management practices.

The control environment at PEPL is adequate, built on a foundation of clear policies and procedures. The Company emphasizes transparency, accountability, and ethical standards in its operations, reinforced by a well-structured management team. Regular monitoring and effective internal controls ensure operational efficiency, risk mitigation, and compliance with relevant laws and regulations. Additionally, the Company leverages advanced IT solutions, enhancing performance across various fronts.

PEPL's business model revolves around entering long-term agreements for the sale of solar-generated power and equipment along with providing operations and maintenance (O&M) services. The cost of the installed project is paid by the customer over the project's lifetime, typically spanning 15 years, through an agreed-upon tariff that covers both the equipment and O&M components. The Company's revenue primarily comes from the commercial and industrial sectors.

The Company is operating and maintaining its solar portfolio in-house. The O&M team is responsible for ensuring the availability and efficiency of the project's generation.

PEPL faces resource risks that include supply chain disruptions, which could delay the procurement of solar panels and equipment, and technical resource challenges related to the availability of skilled engineers and technicians for efficient project execution and maintenance. Financial risks, such as fluctuations in equipment costs due to inflation or currency depreciation—particularly since most equipment must be imported—could impact project financing. Additionally, the variability of sunlight caused by weather conditions poses energy resource risks, affecting solar energy production and revenue. Moreover, non-payment by customers presents financial risk, and retrieving equipment from client locations in some cases could result in legal disputes.

PEPL has substantial insurance coverage for each of its installed projects that includes protection against property damage, terrorism, and third-party business interruption.

The power sector in Pakistan is undergoing significant transformation, with increasing emphasis on renewable energy to address rising costs of electricity generation. The government and private sector have actively promoted sustainable energy solutions, leading to a notable rise in solar rooftop installations. During FY23 and FY24, there has been substantial growth in solar rooftop adoption, driven by rising electricity costs, greater awareness of clean energy, and supportive policies, including net metering. These installations have gained momentum, particularly in the commercial and industrial sectors, as businesses seek to reduce energy expenses and enhance energy security. The trend is also supported by advancements in solar technology and financing options, making solar energy a more viable and attractive choice for consumers across Pakistan.

Currently, the Company has successfully installed and efficiently generated electricity as per benchmarks, with over 10 MW of solar capacity across nine different sites.

In FY24, PEPL experienced financial improvement, as evidenced by a 28% increase in topline revenue (PKR 81mln compared to PKR 63mln in FY23) and a turnaround from a loss of PKR 77mln in FY23 to a profit of PKR 25mln. The Company's gross margin, while slightly lower at 79% (compared to 83% in FY23), remained strong, reflecting healthy revenue generation despite the competitive pricing strategies adopted to expand its project base. This indicates that while Prism was able to secure more projects, the pricing strategy slightly impacted its profitability, but the overall performance remains positive, with better cash flow and improved financial health.

Currently, all projects of PEPL are equity-financed through funds provided by the sponsors. During FY24, the Company's equity base has significantly strengthened, reaching PKR 1,261 million (FY23: PKR 726 million), mainly due to an additional equity injection of PKR 500 million from the sponsors. This funding will support the Company in executing new projects. However, with the increase in the project portfolio and the recent reduction in policy rates, the Company may consider debt financing as an option for pursuing future expansionary projects.

As of FY24, PEPL's free cash flow improved to PKR 25mln, compared to a negative cash flow of PKR 72mln in FY23. This turnaround was driven by an increase in the Company’s project portfolio. Additionally, the Company’s short-term investments in Term Deposit Receipts (TDRs) also saw a substantial rise, reaching PKR 239mln in FY24 compared to PKR 25mln in FY23. This increase in investments is primarily attributed to an equity injection of approximately PKR 500mln from the sponsors, a portion of which is currently invested in TDRs and will be deployed for projects as needed, reflecting a strong liquidity position.

The Company's working capital cycle is driven by trade receivables from solar installations and payables to contractors. As of FY24, due to an expanded project base, trade receivables increased to PKR 113mln from PKR 91mln in FY23. The Company is currently meeting its operational needs through internal cash generation and has not utilized any short-term borrowings. This indicates reliance on self-sufficiency for liquidity but also highlights the need for efficient receivables management to mitigate potential cash flow challenges.

On account of improved core operational performance, the Company's FCFO has increased to PKR 25mln in FY24, compared to a negative cash flow of PKR 72mln in FY23. Additionally, being a debt-free Company, there are no finance costs, and thus no existing coverage ratio. However, if the Company chooses to pursue debt financing for future expansion projects, a cautious approach will be necessary to maintain an optimal balance of financing, ensuring that coverage ratios remain manageable and financial stability is preserved.

PEPL's leverage for FY24 is zero (FY23: Nil), as all projects are entirely equity-financed. The Company has no short-term borrowings, further reflecting its debt-free position.