Cairn India's Q1 net up 22% on forex gain

Moneycontrol Bureau

Oil and gas exploration company Cairn India has reported 22 percent quarter-on-quarter jump in June quarter profit to Rs 3127 crore on forex gain arising out of weak rupee. The Vedanta group company has registered forex gain of Rs 682 crore as against Rs 2.8 crore sequentially, as it prices products in dollar terms.

Sales declined seven percent  Q-o-Q to Rs 4063 crore on lower volumes.

EBITDA margins shrunk to 71.6 percent versus 74.7 percent Q-o-Q.

In a press statement, the firm said that it achieved highest ever gross operated production of 212,442 barrels of oil equivalent per day (boepd) up 5 percent Q-o-Q.

Elango P, Whole time Director, Cairn India said: 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.

Elango further said that Cairn expect the government to come out with a policy on integrated development plan that will help in reducing the time from discovery to production.

Earlier in the day, the firm's chairman Navin Agarwal said, Cairn will invest more than USD 3 billion over the next three years to explore and produce more oil. The investment will be fully funded from its cash resources and will target adding 530 million barrels of oil to its reserves.

Cairn's shares closed the day at Rs 307.85, down around a percent before earnings announcement.

Must Read:Cairn India's Q1 net up  is 22 percent QoQ to Rs 3127 crore on forex gain