Cairn India declines 5% post Q1 results

Cairn India has dipped 5% to Rs 330 after reporting a sharp 65% year on year fall in its consolidated net profit for the April-June 2014 quarter at Rs 1,093 crore, primarily due to change in method of depreciation from Straight line method (SLM) to Unit of production (UOP). The company had profit of Rs 3,127 crore in the same quarter year-ago.

Revenue from operations stood at Rs 4,483 crore, up 10% from Rs 4,063 crore last year.

EBITDA or operating profit margin declined to 70% from 75%, Cairn India said in a statement.

Cairn, which is investing USD 3 billion in raising oil production from the Rajasthan block, plans to invest another USD 200 million in developing a gas find in the predominantly oil-rich block.

Rajasthan block oil production was up 5% at 181,894 barrels per day while gas output doubled to 8 million standard cubic feet per day.

The stock opened at Rs 338 and touched a low of Rs 326 on BSE. A combined 1.2 million shares changed hands on the counter in early morning deals on BSE and NSE.