Cairn India Q2 PAT up 46% at Rs 3,380 cr; sales below estimates

MUMBAI: Cairn India reported a net profit of Rs 3,380 crore for quarter ended September 2013 as compared to a net profit of Rs 2,320 crore in the corresponding quarter last fiscal. The PAT was above ET Now poll estimates of Rs 3,250 crore.

However, the company reported net sales of Rs 4,650 crore, up 4.7 per cent against Rs 4,440 crore in the year-ago period. The ET Now poll expected it to be Rs 4,900 crore.

Other income for the quarter slipped to Rs 111 crore, vs 222 crore in the same quarter last fiscal. The company reported forex gains of Rs 429 crore vs loss of Rs 785.8 crore.

Its oil realisations for the quarter stood at $96.7 per barrel vs $98.1 per barrel, Year-on-Year. Gas realisations increased to $5.9/mscf vs $4.9/mscf, Year-on-Year.

The management has said that it remains on track to achieve FY14 gross production of 225,000 boepd. It has planned $3 billion capex by FY16 and has spent $137 million in second quarter on capacity expansion.

Niraj Mansingka, Associate Director- Wholesale capital markets, Edelweiss Financial Services, is of the view that while net profit was in line with expectations due to rupee depreciation, other income and revenues were below expectations.

According to him, the revenues were lower due to lower production. However, he continues to like the company as the weak rupee will continue to help the bottomline. He expects the consensus earnings estimates to improve as analysts will continue to factor the rupee value against the dollar.