Cairn India Q4 net profit seen 27% up at Rs 2781 crore

MUMBAI: Cairn India will be coming out with its fourth quarter results today. According to ET Now poll, the company’s net profit is likely to rise 27 per cent to Rs 2,781 crore for quarter ended March 2013 from Rs 2,186 crore in the corresponding quarter last fiscal.

The net sales for the quarter are seen growing to Rs 4,273 crore, up 17 per cent, from Rs 3,651 crore in the corresponding quarter a year ago.

EBITDA margins are seen at Rs 3,329 crore as against Rs 2,981 crore year-on-year.

Factors to watch:

Crude realisations are seen at $99/bbl (12 per cent discount to brent)

Production profile seen flat due to production issues at Bhagyam, Mangla

Appreciation of rupee could lead to MTM loss

MTM loss seen in Rs 50-60 crore range for the quarter

“Cairn India's net sales are expected to increase by 20.3 per cent Y-o-Y to Rs 4,393 crore mainly due to increase in volumes. Its operating margin is expected to decline by 837 bps Y-o-Y to 73.3 per cent whereas its bottomline is expected to increase by 17.3 per cent Y-o-Y to Rs 2,819 crore because of increase in operating income. We recommend Buy rating on the stock with a target price of Rs 340,” said Angel Broking note.

At 12:30 p.m.; the stock was flat at Rs 293.40 on the BSE. It touched a high of Rs 297.25 and a low of Rs 291.50 in trade today.