Cairn India declines after reporting net loss in Q4

Cairn India lost 2.81% to Rs 147.15 at 9:33 IST on BSE after the company reported consolidated net loss of Rs 10948.22 crore in Q4 March 2016, higher than net loss of Rs 240.82 crore in Q4 March 2015.

The result was announced after market hours on Friday, 22 April 2016.

Meanwhile, the S&P BSE Sensex was down 5.38 points or 0.02% at 25,832.76.

On BSE, so far 1.94 lakh shares were traded in the counter as against average daily volume of 3.50 lakh shares in the past one quarter. The stock hit a high of Rs 148.70 and a low of Rs 143.65 so far during the day. The stock had hit a 52-week low of Rs 106.60 on 19 January 2016. The stock had hit a 52-week high of Rs 221 on 5 May 2015. The stock had underperformed the market over the past one month till 22 April 2016, sliding 4.24% compared with Sensex's 2% rise. The scrip had, however, outperformed the market in past one quarter, advancing 34.1% as against Sensex's 5.74 % rise.

The large-cap company has equity capital of Rs 1874.86 crore. Face value per share is Rs 10.

Cairn India's net total income from operations declined 35.87% to Rs 1716.83 crore in Q4 March 2016 over Q4 March 2015.

Cairn India's bottom line during the quarter was dragged down due to impairment charges. Due to decline in crude oil prices in the international market, the company has recorded an impairment on the carrying value of goodwill and some of its non-producing oil and gas assets aggregating to Rs 11389.63 crore and Rs 284.17 crore respectively in Q4 March 2016.

Cairn India said it is committed to the company's merger with Vedanta and continue to work towards its completion. The merger would generate value for the shareholders and de-risks Cairn India by providing access to a portfolio of diversified assets in a volatile market and deliver significant near term growth, the company said in a statement.

With regard to its business outlook for the current financial year (FY 2017), Cairn India said it aims to maintain production from Rajasthan asset broadly at FY 2016 level. With an estimated net capex of $100 million, the company plans to invest 80% in development (primarily RDG Gas and Mangala EOR completion activities) and 20% in exploration. Cairn India said it will continue investing in pre-development activities of its key projects in Core MBA fields, Barmer Hills and Satellite fields, to ensure project readiness for development with rebound in oil prices and grant of extension of Production Sharing Contract (PSC). Cairn India said it maintains the flexibility to raise its capital investment as oil prices improve and aim to generate a healthy cash flow post capex so as to retain the ability to pay dividends.

Cairn India, a part of the Vedanta group, is one of the largest independent oil and gas exploration and production companies in India.

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