Cairn India’s net profit jumped by 60 per cent thanks to the other income and reversal of deferred tax liability of Rs 264.79 crore.
The company reported net profit of Rs 469.51 crore in the second quarter of the current financial year compared to Rs 293.32 crore in the corresponding quarter last financial year.
The income too declined 28.33 per cent. Cairn reported the income of Rs 229.78 crore for the quarter ended September 30, 2009 as compared to Rs 320.63 crore in the corresponding quarter last financial year.
As per the notification to the Bombay Stock Exchange (BSE), Cairn received Rs 39.63 crore and Rs 96.78 crore as income from investments. It also gained Rs 66.18 crore and 137.99 crore due to foreign exchange fluctuation.
The company had set aside Rs 264.79 crore as deferred tax liability in relation to Rajasthan field. This was reversed in second quarter “as the group has now considered field life as stipulated in the Production Sharing Contract instead of economic useful life of the field considered earlier”.
The company stock ended at Rs 265.15, down 2.25 per cent on the BSE today.
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