Rising costs see KSK Power Ventur slide in first half

28th Nov 2014 11:34

Power generation assets developer KSK Power Ventur saw first half operating profit fall due to increased costs.The India-focused firm said operating profit for the six months to 30 September was down to $28.6m from $30.4m in the corresponding period 12 months ago.Revenue rose to $175.9m from $150.7m, while lower financial costs saw pre-tax loss narrow from $115.2m to $69m.The company had faced "extraordinary regulatory disruptions and difficult circumstances across the Indian power sector over the last 36 months and the challenging times and overall economic environment in India", the group's chairman, TL Sankar, said.The firm's operating assets recorded aggregate generation of 2,949 megawatt per hour, up 15% year-on-year, but it faced several challenges, such as issues with coal supply to power the plants and with power purchase agreements at key plants.Sankar, however, insisted the outlook remained positive."With a new government in New Delhi, decision making is coming through and Courts and Regulators are now seeking to establish a level playing field for power generation," he said."Therefore, power generation is anticipated to play a central role in supporting the overall economic growth in the country over the next few years."With KSK's underlying assets, associated performance and opportunities, the company is well positioned to be one of the more stable, valuable and sustainable players on the Indian power generation landscape."KSK shares were down 5.29% to 80.50p at 11:47 on Friday.