Cairn India shares down nearly 7% post earnings

Shares of Cairn India today tumbled nearly 7 per cent after the company reported 65 per cent drop in net profit for the April-June quarter.
Cairn India's shares ended at Rs 322.65, down 6.67 per cent on the BSE. During the day, it had plunged 7 per cent to Rs 321.50.
At the NSE, the stock settled 6.68 per cent lower at Rs 322.45.
Following the decline in the stock price, the company's market value fell by Rs 3,134.8 crore to Rs 61,655.20 crore.
In terms of volume, 14.26 lakh shares of Cairn changed hands at the BSE, while over 87 lakh shares were traded at the NSE during the day.

Cairn India had yesterday reported a 65 per cent drop in its first quarter net profit after booking a one-time depreciation charge on new accounting rules, and said it will invest USD 200 million in developing a gas find in predominantly oil-rich Rajasthan block.

Its net profit was down Rs 1,093 crore, or Rs 5.76 a share, from Rs 3,127 crore, or Rs 16.36 a share, in the same period a year ago, the company had said in a statement.
This is the lowest profit for Cairn, the operator of India's biggest oil field on land, in 11 quarters.
The drop in net profit is "primarily due to change in method of depreciation from Straight line method (SLM) to Unit of production", it had said.