Cairn India fell 4.61% to Rs 329.75 at 9:17 IST on BSE after the company's consolidated 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 result was announced after market hours on Wednesday, 23 July 2014.
Meanwhile, the BSE Sensex was down 26.94 points, or 0.10%, to 26,120.39.
On BSE, so far 1.59 lakh shares were traded in the counter, compared with an average volume of 2.37 lakh shares in the past one quarter.
The stock hit a high of Rs 338 and a low of Rs 326 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 286.85 on 1 August 2013.
The stock had underperformed the market over the past one month till 23 July 2014, falling 7.69% compared with 4.46% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.87% as against Sensex's 14.30% rise.
The large-cap company has an equity capital of Rs 1910.90 crore. Face value per share is Rs 10.
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.
Mr. Sudhir Mathur, Interim CEO, Cairn India said: In line with our vision to contribute to the nation's energy security, we are confident of not only achieving the stated exploration target of 3bn barrels of hydrocarbons in-place, ahead of schedule, but also of adding another 3 bn barrel to our un-risked prospect inventory. With multi-Tcf potential, we expect gas to be a significant contributor in our product mix. Before end of financial year 2015, we anticipate doubling of gas production from Rajasthan. Our two main projects of enhanced oil recovery and debottlenecking Mangala Processing Terminal are as per schedule.
Cairn India in its outlook said that with ongoing net capital investments program of $3 billion through end of year ending 31 March 2017, the company remains committed to the creation of long term shareholder value. Based on recent exploration successes, the company is confident that it will establish 3 billion barrels of oil equivalent (boe) hydrocarbons in-place, significantly ahead of schedule. Cairn India has identified significant gas potential in the block and plans are underway to advance commercialisation of discovered gas volumes. Considering the significant potential of the Rajasthan asset, the company continues to focus on other major development projects to enhance recovery and achieve a 3 year production CAGR of 7-10% from known discoveries with flat production in FY15, Cairn India said.
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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