News Column

KSK Power Ventur Swings To Pretax Loss On Difficult Indian Market

July 15, 2014

Tom McIvor

LONDON (Alliance News) - KSK Power Ventur PLC Tuesday said it swung to a pretax loss in its recent full year as currency depreciation and lower revenues due to difficult market conditions for the Indian power sector hit the company.

The power project company with operations in India said it posted a pretax loss of USD72.1 million for the twelve months ended March 31 from a pretax profit of USD37.5 million the previous year.

The company said revenue fell 15% to USD335.9 million from USD392.8 million as plant load factor at both its Sai Wardha and Arasmeta projects was lower than expected.

The Sai Wardha plant load factor fell to 2,586 megawatt hours from 3,403 megawatt hours, and the Arasmeta project plant load factor fell to 341 megawatt hours from 445 megawatt hours as the company struggled to achieve positive prices for coal used at its plants.

KSK Power Ventur also said its cost of sales, distribution costs and finance costs increased during the period, due partly to a provision of USD51.2 million for foreign exchange losses as the Indian rupee depreciated against the UK dollar 11% between March 31, 2013 and the end of March 2014.

"These results are in the context of the circumstances across the Indian power sector and the overall challenging times and economic environment in India. The year proved to be a difficult time for the entire power sector in India, and the company's management has continued its efforts to address the various challenges in the operating projects," Chairman TL Sankar said in a statement.

The company said the construction of its 3.6 gigawatt KSK Mahanadi Power project is continuing with more than 7,000 workers at the site. The first 600 megawatt unit is fully functional at the site, KSK Power Ventur said, and the second unit expected to be brought online shortly.

Upon the successful phased completion of the units of the Mahanadi power project being added to the company's existing portfolio, KSK said it believes it will be one of India's leading suppliers of power.

KSK Power Ventur shares were down 2.8% to 111.83 pence on Tuesday.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Alliance News

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters