Cairn up 3% in early trade on Q3 nos but loses some shine
Shares in Cairn India rose as much as 2.82 percent in early trade Tuesday after reporting a 44 percent, quarter-on-quarter jump in its October-December quarter consolidated profit to Rs 3,345 crore.
The profit was boosted by forex gain of Rs 236 crore and lower tax rate. The company had logged in Rs 786 crore loss in previous quarter.
Operational numbers of the company were slightly weaker than expected. Income from operations declined 4 percent to Rs 4278 crore, QoQ after paying royalty for operating Rajasthan blocks in which it has 70% participating interest along with ONGC's 30% stake.
The management clarified on its production ramp up plans in a conference call post results announcement, which is a positive.
Cairn revised its guidance lower by 10 percent to reach 200-215 kbpd by FY14, due to technical difficulties at Bhagyam.
"Bhagyam will need 15 more wells to reach 40 kbpd peak," the company said.
The research firm CLSA said, "Cairn highlighted its intensive exploration plan in Rajasthan over the next three years which should help it in tapping 670mboe of potential recoverable resources and assist in achieving its 300kbpd of production target."
Shares saw some profit booking after rising sharply in initial trade today, which gained 0.57 percent to Rs 342.25 at 10:07 hours IST.