Business of KSK Energy Ventures Limited
KSK Energy Ventures is a power project development company in India. Currently KSK has three operational power plants which generate 144 MW of power. However KSK is currently under expansion mode which when fully materialize would generate 8993 MW of power.
There are two power projects under construction, one a 135 MW lignite based power project in Rajasthan which would be commissioned in October 2008. The second one is a 540 MW coal based power plant which would commission in December 2009 in Maharashtra.
There are three power plants under development for which the company has secured debt or have entered into term sheets.
The first among these is a 43 MW expansion of the existing power plant in Arasmeta which would be commissioned by the first fiscal in 2011.
Second among this is a 1800 MW coal based power project in Chhatisgarh which is expected to be commissioned in second quarter of fiscal 2012.
Then there is a 130 MW run of the river hydro electric power plant in Arunachal Pradesh which is expected to commence operations in fourth quarter of fiscal 2011.
Along with the above projects there are two more 1800 MW coal based power projects which are in the planning stage in the states of Chhatisgarh and Orissa. The company expects them to be commissioned in fiscal 2013 and 2012 respectively.
Financials of KSK Energy Ventures
The revenues of KSK Energy Ventures grew from Rs.2744.54 lakhs in fiscal 2004 to Rs.9281.63 lakhs in the fiscal 2007. For the same period profits grew from Rs.10.24 lakhs to Rs.1886.16 lakhs.
The EPS for the year 2007 was Rs.2.74 and the two years before that was Rs.2.02 and Rs.2.64 respectively.
Key Risks facing KSK Energy Ventures
Limited experience in developing and operating power projects of the size that are being planned for. One look above at what the company has operational and what the plans are for illustrates that while the company has operational power plants the planned power projects are much bigger in size.
Power projects typically have long gestation periods and it may take a long time before there are returns available on the capital that has been employed by the company.
There has been a restructuring done with the promoter group and as a result of this the historical financial results may not be comparable to the financial results going forward. Â Â