In creating the 390's underbody exhaust, KTM evidently did a thorough job of research and testing, ending up with a system that contributes in a major way to the engine's class-leading power output. The principal feature of this exhaust is a carefully-tuned header and exhaust length such that the resonant frequency of the exhaust pulse waves helps scavenge the exhaust gasses, leading to better cylinder filling/more power. KTM engineers did their homework and produced a very successful component in terms of power extraction from the motor. Unfortunately, very likely for reasons of cost, it was decided to build the exhaust cannister out of mild steel, resulting in a rather heavy lump which could have been significantly lighter if built with other materials.
The video posted by Sinha shows a Duke owner, in a quest for "better sound/more noise" amateurishly cutting a hole in the the exhaust cannister. The probable result of this uninformed intervention is to disrupt the resonant frequency of the tuned exhaust system. Undoubtedly, if this bike were tested on a dyno, first measuring power with the intact OEM exhaust, then comparing this with the altered exhaust's performance, the latter would show a power loss.
Exhaust design is a complex engineering project that draws on several sub-disciplines of physics. It is not for amateurs, or even for aftermarket companies without the necessary design and testing resources. Just to illustrate the difficulties of exhaust design, read the thread below from the RC forum, describing Formula390's efforts to build a lighter, better sounding, more powerful underbody exhaust for the 390 engine:
Exhaust development work