Cairn India rose 1.75% to Rs 156.75 at 09:25 IST on BSE after the company declared its Q2 result after market hours on Wednesday, 21 October 2015.
Meanwhile, the BSE Sensex was up 233.88 points, or 0.86%, to 27,521.54
On BSE, so far 49,812 shares were traded in the counter, compared with an average volume of 2.85 lakh shares in the past one quarter.
The stock hit a high of Rs 157.85 and low of Rs 152.55 so far during the day. The stock had hit a 52-week high of Rs 292 on 27 December 2014. The stock had hit a 52-week low of Rs 121.25 on 24 August 2015.
The large-cap oil and gas exploration and production company has an equity capital of Rs 1874.85 crore. Face value per share is Rs 10.
Cairn India's consolidated net profit fell 70.46% to Rs 672.67 crore on 39.95% decline in total income to Rs 2743.28 crore in Q2 September 2015 over Q2 September 2014. Cairn India's revenue fell 44% to Rs 2242 crore in Q2 September 2015 over Q2 September 2014, mainly due to decline in crude prices.
Cairn India's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 64% to Rs 966 crore in Q2 September 2015 over Q2 September 2014. EBITDA margin dropped to 30% in Q2 September 2015 from 57% in Q2 September 2014.
In the wake of sustained low crude price environment, Cairn India said that it is actively engaging with the government along with other industry players on various strategic issues, which include a revision of the cess charged on oil production to be in-line with crude prices, production sharing contracts (PSC) extension policy and fair price realization of domestically produced hydrocarbons amongst others. Cairn India expects that these policy revisions will enhance the investment climate for the oil & gas sector in India.
In its outlook, Cairn India said that despite prevailing low oil prices and substantial cut in capex, the company will at a minimum maintain Rajasthan production in current year at FY15 levels. The company aims to have healthy cash flows post capex so as to retain the ability to pay dividends subject to board of directors, Cairn India said.
Mayank Ashar, Managing Director and CEO of Cairn India said that with good visibility in near term on multiple projects in the pipeline, the management is optimistic of meeting its production projections for FY 2016.
With regard to its proposed merger with Vedanta, Cairn India said that both NSE and BSE have provided their no objection to the proposed merger vide their observation letters dated 10 September 2015. The validity of the observation letter is six months, within which the scheme of amalgamation is required to be submitted to the High Court, Cairn India said.
It may be recalled that Vedanta and Cairn India had on 14 June 2015 announced that Cairn India will be merged with Vedanta. As per the merger scheme, minority shareholders of Cairn India will receive one equity share of Vedanta for each share held in the company. The minority shareholders of Cairn India will additionally get one 7.5% redeemable preference share (RPS) of Vedanta of a face value of Rs 10 each for each share held in the company. No shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India.
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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