(KSK.L) KSK Power Ventur PLC Buy/Sell

Business Update

The first six months of the current year reflects a good operating performance of the power plants under operations and sustained effort to complete construction and commission the VS lignite and Wardha Power asset in Warora, Maharashtra. Also, the company has made extensive progress on the development of the 3600 MW Chattisgarh power project on various fronts and expecting the Contractor to begin construction works at site shortly.

Operating Assets:

On a standalone basis, among the three operating power plants, both Arasmeta (43 MW) and Sitapuram (43 MW) have recorded PLF of 85% while Sai Regency continued to operate around 68% PLF. Efficient operations and robust sale realization from surplus sale ( on short PPAs) from these assets have enabled enhanced performance as highlighted below:

The company expects to maintain this momentum for a substantially good full year results from these operating assets

Construction Assets to commission - VS Lignite and Wardha Power

The period under review has witnessed substantial construction progress and completion of erection works of the Boiler, Turbine and Generator with respect to both VS Lignite and Wardha Warora projects. We are pleased to note that having completed construction, both the 135 MW at VS lignite and first and second 135 MW unit at Wardha Warora are ready for necessary activity to synchronize, commission the asset and undertake power generation as expected.

Recently guidelines of the Government of India has required the commissioning engineers needed for our power plants (who are overseas engineers) to enter India only under Employment visas. Both the VS Lignite and the Wardha Power plants are ready and would need 30 to 45 days from the time of arrival of the Chinese commissioning engineers for synchronization. Government of India is aware of this issue and we are expecting these visas on an early date.

Wardha Chhattisgarh, 3600 MW

Wardha Chattisgarh has witnessed substantial progress during the last six months on various areas including amongst others, land acquisition, progress on tie-up of the project debt, equity commitments from various government stakeholders at the power plant level, EPC contractor and commencement of site works as well as obtainment of Environment Clearance. The company has appointed various agencies to assist in the project implementation and currently finalizing various non-EPC works that are expected to complete around the same time the first unit of 600 MW is expected to commission in 2012.

Further, the company is currently undertaking a Scheme of Demerger pursuant to which warora power plant would continue in the Wardha Power Company Limited SPV while the Chhattisgarh power project is planned to be undertaken in a newly incorporated SPV company "KSK Mahanadi Power Company Limited".

For further information please contact:

KSK Power Ventur plc +91 40 2355 9922

S. Kishore

Arden Partners plc +44 (0) 020 7398 1632

Richard Day / Adrian Trimmings

Buchanan Communications +44 (0) 20 7466 5000

Mark Edwards / Nicola Cronk

Unaudited Consolidated Financial Results for the period ended Sept 30, 2009 (All amount in Indian Rupees million, except share data and where otherwise stated)

S.No Particulars 3 months ended 3 months ended Year to date figure Year to date figure Previous accounting
for current period for previous period year ended
ended ended
30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08 31-Mar-09
Unaudited Unaudited Unaudited Unaudited Audited
1 a Net sales/Income 1,069.98 989.88 2,153.20 1,557.92 3,496.13
from operations
b Other operating 142.57 170.56 187.99 280.27 305.23
income
Total income 1,212.55 1,160.44 2,341.19 1,838.19 3,801.36
2 Expenditure
a (Increase)/decrease - - - - -
in stock in trade
and work in progress
b Consumption of raw 290.75 207.43 576.10 458.38 1,040.07
materials
c Purchase of traded - - - - -
goods
d Employees cost 28.78 27.04 54.75 49.27 101.35
e Depreciation 63.17 62.33 124.43 123.27 246.43
f Other expenditure 128.78 144.64 292.31 253.78 478.10
Total expenditure 511.48 441.44 1,047.59 884.70 1,865.95
3 Profit from 701.07 719.00 1,293.60 953.49 1,935.41
operation before
other income,
interest and
exceptional items

4 Other income 123.99 232.20 457.26 735.70 1,122.74
5 Profit before 825.06 951.20 1,750.86 1,689.19 3,058.15
interest and
exceptional items
(3+4)
6 Interest 319.72 290.01 584.51 552.67 1,221.01
7 Profit after 505.34 661.19 1,166.35 1,136.52 1,837.14
interest but before
exceptional items

8 Exceptional items - - - 60.00
9 Profit (+)/ Loss (-) 505.34 661.19 1,166.35 1,136.52 1,897.14
from ordinary
activities before
tax (7+8)
10 Tax expense 92.76 209.07 238.11 278.13 442.88
11 Net Profit (+)/ Loss 412.58 452.12 928.24 858.39 1,454.26
(-) from ordinary
activities after tax

12 Extraordinary Items - - - - -
(net of tax expense
Rs. Nil)
13 Net Profit(+)/ 412.58 452.12 928.24 858.39 1,454.26
Loss(-) for the
period (11-12)
14 Minority interest 40.10 (1.78) 76.74 16.63 95.11
15 Shares of associates - - - - -
16 Other related items - - - - -
17 Consolidated Net 372.48 453.90 851.50 841.76 1,359.15
Profit(+)/ Loss (-)
for the period
(13-(14 to 16))
18 Face Value (in Rs.) 10.00 10.00 10.00 10.00 10.00
19 Paid-up equity share 3,461.05 3,461.05 3,461.05 3,461.05 3,461.05
capital
20 Reserves excluding - - - - 16,360.19
revaluation reserves
as per balance sheet
of previous
accounting year
21 Earnings Per Share

a Before extraordinary
items for the
period, for the year
to date and for the
previous year/period
(non annualized)

Segment wise revenue, results and capital employed under clause 41 of the Listing agreement (All amount in Indian Rupees million, except share data and where otherwise stated)
Particulars 3 months ended 3 months ended Year to date for Year to date for Previous accounting
current period ended previous period year ended
ended
30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08 31-Mar-09
Unaudited Unaudited Unaudited Unaudited Audited

1. Segment revenue (net sale/income from each segment should be disclosed under this head)
(a) Project development 408.35 519.15 783.51 522.75 1,064.78
(b) Power generation 664.68 473.78 1,375.79 1,041.27 2,443.56

(c) Unallocated
Total 1,073.03 992.93 2,159.30 1,564.02 3,508.34
Less: Inter segment revenue 3.05 3.05 6.10 6.10 12.21
Net sales/income from 1,069.98 989.88 2,153.20 1,557.92 3,496.13

operations
2. Segment results profit(+)/ -

(loss) (-) before tax and interest from each segment)
(a) Project development 361.04 457.59 646.77 414.31 863.43
(b) Power generation 197.46 90.85 458.84 258.91 766.75
(c) Unallocated - - - - -
Total 558.5 548.44 1105.61 673.22 1630.18
Less: i) Interest 319.72 290.01 584.51 552.67 1,221.01
Add : ii) Other un-allocable 266.56 402.76 645.25 1,015.97 1,487.97

income net off un-allocable expenditure
Total Profit before tax 505.34 661.19 1,166.35 1,136.52 1,897.14
3. Capital employed -
(Segment assets - Segment -

liabilities)
(a) Project development 2,342.20 2,275.57 2,342.20 2,275.57 2,505.56
(b) Power generation 58,560.48 21,551.21 58,560.48 21,551.21 30,773.90
(c) Unallocated 3,917.08 13,286.62 3,917.08 13,286.62 10637.69
Total 64,819.76 37,113.40 64,819.76 37,113.40 43,917.15

This information is provided by RNS The company news service from the London Stock Exchange

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