Cairn India turns volatile after weak Q1 outcome

Cairn India lost 0.11% to Rs 307.50 at 9:56 IST on BSE after consolidated net profit fell 18% to Rs 3127 crore on 8% decline in revenue to Rs 4063 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced after market hours on Wednesday, 24 July 2013.

Meanwhile, the S&P BSE Sensex was down 37.44 points or 0.19% at 20,053.24.

On BSE, 47,000 shares were traded in the counter as against average daily volume of 1.53 lakh shares in the past one quarter.

The stock was volatile. The stock lost as much as 1.26% at the day's low of Rs 303.95 so far during the day. The stock rose as much as 0.37% at the day's high of Rs 309 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 24 July 2013, surging 8.72% compared with the Sensex's 8.36% jump. The scrip had also outperformed the market in the past one quarter, advancing 6.58% as against Sensex's 4.75% rise.

The large-cap company has equity capital of Rs 1910.32 crore. Face value per share is Rs 10.

Cairn India reports revenue net of profit-sharing with the government in all blocks and Rajasthan block royalty expense. During the quarter, the profit petroleum pay-out to the government rose from 20% to 30% in the DA1 in the Rajasthan block. The gross cumulative Rajasthan development capital expenditure as on 30 June 2013 was $3.9 billion, of which $107 million was spent in Q1 June 2013 including $19 million in DA 2.

Cairn India said it achieved highest ever gross operated production of 212,442 barrels of oil equivalent per day (boepd) in Q1 June 2013. The company achieved record average daily production of 173,517 boepd for Rajasthan block during the quarter.

Commenting on the first quarter results, Mr. Elango P, Whole time Director, Cairn India said: "I am very pleased to report that we are once again delivering robust operational and financial results with the company achieving its highest ever gross operated daily production. We continue to generate substantial cash flow from one of the lowest cost producing assets in the world and are well placed to deliver success from our $3 billion capital expenditure programme. We remain focussed on driving production growth from our core Rajasthan asset and delivering positive results from our extensive exploration and appraisal program. We remain particularly excited by the deep gas prospects and welcome the recent Government decision on gas pricing that will encourage higher investments in exploration and the development of gas discoveries. We expect the government to come out with a policy on Integrated Development Plan that will help in reducing the time from discovery to production".

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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