Higher production pushes Cairn India net to Rs 2,322 cr

Cairn's stock rose 1.3% to close at Rs 337.8 on the BSE

Riding on higher production, Cairn India, the subsidiary of London stock exchange-listed Vedanta Resources, more than tripled its net profit during the September quarter to Rs 2,322 crore.

The increase in production helped the company offset foreign exchange loss of Rs 786 crore, against a gain of Rs 531 crore in the year-ago period.

Net profit in the year-ago period stood at Rs 763.03 crore, primarily due to low production and recovery of royalty payment from costs.

The company would consider its maiden dividend on October 31, it said in a press statement. “The quarter saw consistent production from our flagship Rajasthan asset. The block continues to produce 175,000 barrels of oil per day, which was more than 20 per cent of India’s domestic oil production. Work to enhance production from the block continues to remain our focus,” said Elango P, Interim chief executive officer, Cairn India.

 

Refiners including Reliance Industries and Essar Oil buy Cairn’s crude. The company’s revenue went up by 68 per cent to Rs 4,443.1 crore.

While Cairn’s Mangala field continues to produce at around 150,000 barrels of oil per day; production from the Bhagyam field, crossed five million barrels. The company expects to commence production in Aishwariya field by the end of the current financial year from which initial production would be about 10,000 barrels of oil per day.

Cairn’s stock rose 1.3 per cent to close at Rs 337.8 on the BSE.