Cairn India stock tanks 6% in morning trade post earnings

Shares of Cairn India today plunged nearly 6 per cent in morning trade after the company reported a 65 per cent drop in net profit for the June quarter.
Cairn India's scrip tanked 5.69 per cent to Rs 326 on the BSE.
On the NSE, it was down 5.8 per cent to Rs 325.50.
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.
Net profit in the April-June quarter fell 65 per cent to 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.