KSK operating profits up 57%

KSK Power Ventur posts a pre-tax loss of $82m for the six months to the end of September - down from $117m last time.

Gross revenues fell by 7% to $292m but operating profits rose by 57% to $80m.

Chairman L. Sankar said: 'The period under review witnessed the continuation of the prolonged period of challenges and uncertainty across the Indian power sector as a whole and the various operating power plants of the Group in particular.

'Further, the developments at Sai Wardha and VS Lignite highlight the requirement of the Group to reconsider its business approach and explore alternative solutions and equity collaborations at each of the Group's assets to preserve long term value.

'With KSK Mahanadi intended to be the main stay of the Company's operating and financial performance moving forward, enhanced performance achievement is contingent upon a number of government initiatives committed being implemented, as well as debt refinancing being concluded and the potential equity collaboration at KSK Mahanadi also being finalised in consultation with project lenders.

'Notwithstanding the challenges across the sector the Company's underlying assets, the risk mitigation strategies and certain recent positive developments within the power sector should, in the long term, assist in moving the Company back towards meeting market expectations.

'This continued progress and sustained operating performance during the period, in spite of the wider power sector challenges across India, would not have been possible without the continued support of our shareholders, who have enabled us to pursue business opportunities against a background of challenging market conditions.'