Bangalore: KSK Power Venture posted lower-than-expected sales and profit in the third quarter, hurt mainly by a slowdown in demand and lower production from its key Wardha power plant in India, but said that it witnessed a pickup in activity since the end of the quarter.
“The fourth quarter should witness the necessary correction in power off-take and associated revenue and profitability...We have faced short term volatility across our operations but the current outlook is positive,” the company said in a statement.
Analysts, on average, are expecting a pretax profit of $78.5 million on revenue of $203 million for the financial year ending March 2011, according to Thomson Reuters I/B/E/S.
In November, KSK posted a 29% rise in first-half profit boosted by its core power generation business, and said revenue streams would continue to grow in the second half.
The India-focused power plant developer also expects its plants at Arasmeta, Sai Regency, Sitapuram and VS Lignite to contribute significantly to sales and profit for the full year.
KSK said it was looking to complete construction of the last unit of its Wardha Warora project before March-end and start power generation that would see it crossing its total capacity of 900 Megawatts (MW).
KSK shares, which have shed about 16% in value over the past three months, were down 6.3% at 450 pence at 01:10 pm on Tuesday on the London Stock Exchange.