Cairn India, a subsidiary of Vedanta Resources, is likely to continue reporting weak set of earnings in quarter ended September 2015 due to lower Brent crude oil prices. Profit is seen falling 31.1 percent sequentially to Rs 575 crore during the quarter compared to Rs 835 crore in preceding quarter, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit may drop 31.5 percent to Rs 940 crore from Rs Rs 1,373 crore during same period.
Brent crude oil prices declined 19.2 percent in September quarter on sequential basis, which may hit EBITDA and profit. Rajasthan production is expected to remain flat quarter-on-quarter, feel analysts, adding forex gain may aid earnings.
Key issues to watch out for would be update on PSC extension, production ramp-up, reserve updates, clarity on merger with Vedanta, and guidance or production ramp-up & reserve upgrades.
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