Indian power generator KSK Power Ventur (KSK) enjoyed a return to profitability in its first-half results and numbers would have been better, but for continued weakness of the rupee against the dollar.
Revenue growth, excluding currency effects during the period, was up 30 per cent. However, with the rupee depreciating 20 per cent against the dollar, reported revenue growth was more subdued. TL Sankar, chairman of KSK Power, described the six-month period as a difficult time for the power sector in India, but he was satisfied with results given the challenging economic environment. KSK operates a range of coal, solar and wind plants generating capacity of 881 megawatts (MW), but that will be dwarfed by the 3,600 (MW) KSK Mahandi project, currently under construction.
In a construction update on the landmark project, management said they expect the first boilers to be lit in the next 60 days on a test basis, with two of the six 600MW plants being fully commissioned next year. KSK also believe they have sourced enough coal to supply the initial power generation plans, but are still waiting on a decision by the Indian Government on certain coal supplies. KSK also said that site preparation works had started on the 10MW solar power project in the state of Rajasthan.
KSK POWER VENTUR (KSK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 403p | MARKET VALUE: | £642m | |
| TOUCH: | 395-410p | 12-MONTH HIGH: | 600p | LOW: 395p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 287¢ | NET DEBT: | $2.5bn | |
| Half-year to 30 Sep | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 183 | -35.9 | -0.13 | nil |
| 2012 | 199 | 34.3 | 0.16 | nil |
| % change | +9 | - | - | - |
| £ = $1.6 | ||||
