A confluence of negative factors combined to drag down first-half performance at Indian power developer, KSK Power Ventur (KSK). A prolonged monsoon season affected load factors at its operational plants, which had a knock on effect on tariffs achieved, while delays to the completion of fuel supply agreements meant higher fuel costs and thinner margins. The weakening rupee also meant that financial results, when translated into dollars, suffered.
The combined effect produced a 24 per cent slide in revenues to $150.7m (£92.25m) for the six months to end-September and a pre-tax loss of $115.25m, compared with a profit of $34.65m last year. Full-year output is expected to be higher due to uninterrupted production and also contributions from the Mahandani project, but profit margin improvement will depend on the completion of fuel supply agreements.
