Cairn India's third quarter profit is expected to decline 40 percent sequentially to Rs 1,625 crore on lower revenue and operational performance, according to the average of analysts polled by CNBC-TV18.
The sharp fall in crude oil prices is likely to have an impact on Cairn's earnings in Q3FY15. Brent crude prices fell to USD 49 a barrel (currently) from USD 115 a barrel in June 2014.
Revenue of the private oil & gas explorer is seen going down 16 percent to Rs 3,350 crore in the quarter ended December 2014 from Rs 3,982 crore in the year-ago period.
Operating profit (EBITDA) may fall 23.5 percent quarter-on-quarter to Rs 2,030 crore and margin may decline 610 basis points to 60.6 percent in the quarter gone by.
Analysts expect average realization at USD 70 a barrel for the quarter as against USD 91 a barrel in previous quarter. Production increase may mitigate some losses of lower crude, feel analysts.
According to a poll, the company may get forex gain of Rs 170 crore in December quarter as against Rs 240 crore in September quarter.
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