Cairn India drops as crude oil slides

Cairn India fell 1.45% to Rs 288.85 at 9:22 IST on BSE, taking cues from a decline in US crude oil futures today, 23 April 2013.

Meanwhile, the BSE Sensex was down 35.83 points, or 0.19%, to 19,134.

On BSE, 43,000 shares were traded in the counter as against an average daily volume of 2.81 lakh shares in the past one quarter.

The stock hit a high of Rs 292.90 and a low of Rs 287.50 so far during the day. The stock had hit a 52-week high of Rs 365.90 on 17 September 2012. The stock had hit a 52-week low of Rs 267.90 on 28 March 2013.

The stock had outperformed the market over the past one month till 22 April 2013, rising 5.60% compared with the Sensex's 2.32% rise. The scrip had, however, underperformed the market in past one quarter, sliding 11.89% as against Sensex's 4.06% fall.

The large-cap company has an equity capital of Rs 1910.26 crore. Face value per share is Rs 10.

US crude oil futures for May 2013 delivery were down $0.36 a barrel at $88.83 a barrel in the electronic trading today, 23 April 2013. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.

Meanwhile, Cairn India's consolidated net profit after giving impact of scheme of arrangement for earlier periods rose 17.26% to Rs 2563.60 crore on 29.93% growth in total income to Rs 4582.52 crore in Q4 March 2013 over Q4 March 2012. The oil exploration firm announced the results after trading hours on Monday, 22 April 2013.

The company's consolidated net profit, excluding foreign exchange fluctuation and impact of the re-organization, jumped 56% to Rs 11606.30 crore on 48% growth in revenue to a record Rs 17524.10 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Earnings before interest taxation, depreciation and amortisation (EBITDA) jumped 41% to Rs 13033.20 crore in FY 2013 over FY 2012.

Commenting on the financial performance, Elango P, Whole Time Director and Interim CEO, Cairn India said that the operating environment has substantially improved with key approvals coming in at a faster pace that enabled the company to ramp up Mangala production, bring Aishwariya field online, commence gas sales and most importantly re-commence exploration in Rajasthan. He said that the company has initiated the largest ever exploration and appraisal programme to unlock further potential in Rajasthan as well as focus on next stage of growth beyond Rajasthan. Commensurate with the development and exploration activity across the existing portfolio, the company has planned a net capital investment of $3 billion through FY 2015-16.

Cairn India is primarily engaged in the business of oil and gas exploration, production and transportation. The company sells its oil to major refineries in India and its gas to both public sector units and private buyers

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