Cairn India posts 17% rise in Q4 net profit

Net sales up 20% to Rs 4,363 cr vs Rs 3,651 cr in Q4

Pushed by an increase in production, Cairn India Ltd posted a 17 per cent rise in net profit at Rs 2,563 crore during the fourth quarter of FY13, compared to Rs 2,186 crore during the same period in FY12.

The company’s net sales for the period under review also zoomed 19.5 per cent to Rs 4,363 crore, against Rs 3,651 crore during the fourth quarter of FY12.

The company’s net sales for the entire financial year saw a 52 per cent rise to Rs 12,056 crore, against Rs 7,938 crore during FY12. Revenues for FY13 also saw a 48 per cent increase to Rs 17,524 crore against Rs 11,860 crore during FY12.

Cairn’s gross operated production saw a 19 per cent increase over the previous year to 205,323 barrels of oil equivalent per day. The increase was primarily due to the 32 per cent year-on-year increase in the Rajasthan block production. Cairn posted a foreign exchange loss of Rs 2.8 crore during the fourth quarter, compared to a loss of Rs 216.95 crore during the same quarter last year.

“Our focus is hugely on exploration activities. In the next three years, we are looking to invest about Rs 5,000 crore in 450 wells in Rajasthan. Moreover, we have also asked the government for re-allotment of surrendered areas in Rajasthan. In 2013-14, we are looking at increasing the production to 215,000 barrels per day,” said P Elango, whole-time director and interim CEO, Cairn India.

Production from the Rajasthan block is currently at 175,000 barrels of oil equivalent per day. The company is looking to use its $3 billion cash reserves mainly on exploration purposes.

Meanwhile, Cairn India’s board has recommended a final dividend of Rs 6.5 per share, resulting in a total dividend of Rs 11.5 per share for the year, culminating in a total payout of 21.2 per cent (including dividend distribution tax) of profit after tax for the year.