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Cairn India gains after new oil discoveries

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Capital Market
Last Updated : Sep 17 2014 | 4:00 PM IST

Cairn India rose 1.94% to Rs 326.45 at 15:08 IST on BSE after the company announced three new oil discoveries in Rajasthan block.

The announcement was made during market hours today, 17 September 2014.

Meanwhile, the BSE Sensex was up 119.47 points, or 0.45%, to 26,611.98.

On BSE, so far 1.25 lakh shares were traded in the counter, compared with an average volume of 1.92 lakh shares in the past one quarter.

The stock hit a high of Rs 329.35 and a low of Rs 320.55 so far during the day. The stock hit a 52-week high of Rs 385 on 10 June 2014. The stock hit a 52-week low of Rs 304.25 on 25 July 2014.

The stock had underperformed the market over the past one month till 16 September 2014, rising 0.72% compared with 1.49% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 12.63% as against Sensex's 5.17% rise.

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The large-cap company has an equity capital of Rs 1874.63 crore. Face value per share is Rs 10.

Cairn India said three new oil discoveries have been made in Block RJ-ON-90/1, taking the total number of discoveries in the block to date to 36.

One the oil discoveries is a significant discovery in view of its proximity to the Mangala oil field and fast track appraisal is planned to facilitate rapid commercialization of this discovery, the company said in a statement.

Meanwhile, Cairn India's board of directors at its meeting held today, 17 September 2014, declared an interim dividend of Rs 5 per equity share for the financial year ending 31 March 2015. This will entail an outflow of Rs 1097 crore, including the dividend distribution tax of Rs 159 crore.

On a consolidated basis, Cairn India's net profit fell 65.05% to Rs 1092.90 crore on 10.33% rise in total income from operations (net) to Rs 4482.85 crore in Q1 June 2014 over Q1 June 2013.

The steep fall in the company's bottom line was due to an exceptional deprecation charge of Rs 1627.39 crore with retrospective effect in Q1 June 2014 due to change in method of depreciation from Straight Line method (SLM) to the Unit of Production (UOP) method.

Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both public sector units and private buyers.

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First Published: Sep 17 2014 | 3:06 PM IST

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