Cairn India net down 18%

Company plans to invest Rs 16,000 crore in next three years

Cairn India Ltd, a unit of London-listed Vedanta Resources Plc, posted an 18.3 per cent drop in net profit at Rs 3,127 crore for the June quarter, compared with Rs 3,826.7 crore reported in the year-ago period. A rise in the government’s share of oil from its showpiece Rajasthan fields and lower prices undid record oil production.

The fall in profit, however, has not affected the company’s investment plans. “Over the next three years, through the end of FY2016, your company will invest more than Rs 16,000 crore in pursuit of finding and producing more oil,” Chairman Navin Agarwal told the annual general meeting on Wednesday. “This will be funded by our strong production base and harnessed by the ongoing application of innovative technologies.”

Net profit, however, saw a 22 per cent rise from the Rs 2,563.6 crore reported in the previous quarter. The company has achieved highest gross operated production of 212,442 barrels of oil equivalent per day during the period.