Cairn India rose 1.16% to Rs 178.65 at 10:00 IST on BSE after consolidated net profit fell 28.27% to Rs 359.55 crore on 21.57% decline in total income to Rs 2288.71 crore in Q1 June 2016 over Q1 June 2015.
The result was announced after trading hours yesterday, 21 July 2016.Meanwhile, the S&P BSE Sensex was down 38.95 points or 0.14% at 27,692.61.
On BSE, so far 2.19 lakh shares were traded in the counter as against average daily volume of 2.92 lakh shares in the past one quarter. The stock hit a high of Rs 179.50 and a low of Rs 174.05 so far during the day. The stock had hit a 52-week high of Rs 184.20 on 23 July 2015. The stock had hit a 52-week low of Rs 106.60 on 19 January 2016. The stock had outperformed the market over the past one month till 21 July 2016, gaining 27.69% compared with Sensex's 3.35% rise. The scrip had also outperformed the market in past one quarter, advancing 17.34% as against Sensex's 7.07% rise.
The large-cap company has equity capital of Rs 1874.86 crore. Face value per share is Rs 10.
Cairn India's normalised net profit jumped 88% to Rs 360 crore on 10% rise in net revenue to Rs 1885 crore in Q1 June 2016 over Q4 March 2016. Net revenue increased sequentially on account of a significant rise in Brent prices. Net profit rose sequentially driven by higher EBITDA but was partly offset by higher depreciation, depletion and amortization (DD&A) charges and forex losses.
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Cairn India's average price realisation per barrel of oil equivalent (boe) dropped to $38 in Q1 June 2016 compared with $56 in Q1 June 2015.
Mr. Sudhir Mathur, CFO and acting CEO of Cairn India commented on Q1 results that Cairn India delivered a resilient performance, registering 88% increase in profit for the quarter on sequential basis. The company has taken significant measures to drive cost efficiency and rationalize capital investment, resulting in free cash generation in a lower-for-longer oil price environment. The company remains committed to four projects - RDG Gas, Enhance Recovery at Bhagyam & Aishwariya as well as the tight oil projects. Sharp reductions in drilling and fraccing costs coupled with learnings from Mangala EOR has given the confidence that the company will be ready to execute in a $ 50 per barrel world within 12 months, he added.
Cairn India in its outlook for the year ending 31 March 2017 (FY 2017) said that pursuing its goal to create a long term value, Cairn India will remain focused on monetizing its Rajasthan resource base in FY 2017. An estimated net capex spend of $100 million is proposed, 20% of which is for exploration while balance will be invested primarily to develop RDG Gas and for completion activities of Mangala EOR completion. The aim will be to maintain production from Rajasthan asset at FY 2016 level. Efforts are underway to further improve the economics of key projects that includes Bhagyam & Aishwariya EOR, Barmer Hill and Satellite fields, at low oil price and invest in their pre-development activities to ensure project readiness for development with grant of extension of PSC. The company maintains its flexibility to raise capital investment as oil prices improve and aims to generate a healthy cash flow post capex so as to retain the ability to pay dividends.
Cairn India, a part of the Vedanta group, is one of the largest independent oil and gas exploration and production companies in India.
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