Indian subsidiary financial results

9 May 2011

KSK Power Ventur plc("KSKPV" or "the Company")Indian subsidiary financial results (under Indian GAAP) for the year ended 31 March 2011

KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants across India, is pleased to announce that its subsidiary, KSK Energy Ventures Limited ("KSKEV"), the equity shares of which are listed and traded on the National Stock Exchange of India Limited ("NSE") and the Bombay Stock Exchange Limited ("BSE"), has filed with the NSE and BSE on 6 May 2011, its audited financial results for the twelve months ended 31 March 2011. KSKPV will be announcing its results for the year ended 31 March 2011 under IFRS during June 2011.

Full details of the KSKEV results are available from the KSK section of the NSE website (www.nseindia.com) and the BSE website (www.bseindia.com).

Business update

  KSKPV is pleased to note the forward movement of the business and potential of its Indian subsidiary, KSKEV, with respect to the underlying business. The power generation activities, with associated revenues and profitability have displayed upward trend. As a result, the consolidated total income during the year ended 31 March 2011 was INR 11436 million, up 132% against the previous year of INR 4922 million.

PBIT was INR 4331 million, up 55% against the previous year of INR 2799 million. KSKEV experienced a consolidated profit, before Minority Interest, of INR 2280 million, as against INR 1913 million in the previous period. With generation picking from operational units of the wardha warora power plant, the increasing focus and priority of the group has been to actualize the low cost linkage coal supplies and minimize dependence on e-auction / market based coal supplies that are significantly eroding profitability. The Group has been successful in the same during the current quarter and anticipate beginning to actualize benefits of such coal supplies during first quarter of 2011-12 and the cost of production gradually coming down over the next few quarters.

Commenting on the results, Mr. T. L. Sankar, Non Executive Chairman of KSK said:

"With over 930+ MW of Operational power plant Capacity on ground, the primary focus of the Group would be to operate them efficiently and generate anticipated profitability levels over coming quarters. In addition, the construction progress on 3600 MW KSK Mahanadi power project in Chhattisgarh would provide the strong support required to increased for the Group's installed capacity beyond the 4500 MW level by 2014.

While the long term outlook of the Group's business looks strongly positive, there are temporary disruptions in the wider environment affecting all power generators in India and the Group is currently putting together requisite initiatives to handle the same."

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