First published in Quoted Cleantech November 2010

ndian renewable power generator KSK Power Ventur, listed on the London Stock Exchange, significantly increased its interim revenues, but higher interest costs meant that the fully listed company’s interim profit declined during its first half.

Revenues jumped from $24.4 million to $82.6 million in the six months to September 2010 as new capacity came on stream. Even though overheads have been increased to cope with expansion, operating profit improved from $15 million to $40.3 million.

Capital investment has increased borrowings and there was a net interest charge in the period, compared with net interest income plus a number of one-off gains the previous year. This meant that the firm’s first half profit before tax came in at $35.5 million, compared with $40.3 million in H1 2010.

KSK has a generating capacity of 549MW with a further 52MW of wind power in place. Another 313MW should start to generate power by next March, which will take KSK’s capacity to more than 900MW.

KSK Mahanadi, a 3,600 MW power plant in Chhattisgarh, is under active construction and there are a further 6GW of production projects at early stages of development. “These are exciting times for the company with a number of further projects under way,” said K A Sastry, KSK’s executive director. “We are confident in our ability to meet our longer term goals.”

Net debt was around $760 million at the end of September 2010, if long term investments and financial assets are taken into account.

Revenues will continue to grow in the second half of the financial year as there is a greater contribution from new capacity.

 

 Market: London

Symbol: KSK

Price: 535p

12 month high/low: 645p/415p

Market cap: £812m

 

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