- Strong Q1 earnings fuel Cairn India
Hot Pursuit Wednesday, July 27, 2011 09:36 Hrs IST

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Strong Q1 earnings fuel Cairn India

Cairn India rose 1.05% to Rs 326.30 at 09:22 IST on BSE, after consolidated net profit jumped 869% to Rs 2726.60 crore on 342% surge in revenue to Rs 3712.70 crore in Q1 June 2011 over Q1 June 2010.

The result was announced after market hours on Tuesday, 26 July 2011.

Meanwhile, the BSE Sensex was up 13.84 points, or 0.07%, to 18,532.06

On BSE, 63,231 shares were traded in the counter as against an average daily volume of 2.92 lakh shares in the past one quarter.

The stock hit a high of Rs 328 and a low of Rs 324 so far during the day. The stock had hit a record high of Rs 372 on 5 April 2011. The stock had hit a 52-week low of Rs 285 on 26 November 2010.

The stock had outperformed the market over the past one month until 26 July 2011, rising 4.19% compared with the Sensex's 1.52% rise. The scrip had underperformed the market in past one quarter, falling 7.34% as against 5.26% decline in the Sensex.

The large-cap private sector oil explorer has equity capital of Rs 1902.29 crore. Face value per share is Rs 10.

Commenting on the first quarter results, Rahul Dhir, Managing Director and Chief Executive Officer, Cairn India said, "Cairn India's focus on safe and efficient operations ensured delivery of more than 50 million barrels of crude oil to Indian refineries. The Mangala reservoir continues to perform as per expectations and production has been maintained at 125,000 barrels of oil per day. As per the approved field development plan, we are now focussed on commencing production from Bhagyam coupled with the commissioning of Train Four at the Mangala Processing Terminal.

Dhir said Cairn's Rajasthan fields have significant growth potential and an increase in production from this world class asset will enhance the energy security of the nation. The optimal development of this resource will only be possible with the active support of joint venture partner in the field, ONGC, and the Government of India, Dhir said. "The mobilisation of the drill ship brings us closer to the commencement of our exploration campaign in the frontier Mannar basin offshore Sri Lanka," Dhir said.

Cairn India said it is seeking shareholders' approval for the conditions imposed by the government of India for the proposed sale of a substantial part of its shareholding in the company by parent Cairn Energy PLC to Vedanta Resources. The company said royalty sharing with joint venture partner, ONGC, with respect to a key oil field, one of the key conditions for the clearance of the deal, will lead to a decline in the revenues and profit after tax for the current quarter by Rs 1291.60 crore.

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 state run and private buyers.

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