Cairn India Q1 consolidated net profit falls 28%

Cairn India on Thursday reported over 28% fall in the consolidated net profit in the first quarter (Q1) ended on June 30, 2016.

The company's net profit during the April-June quarter of the fiscal year 2016-17 (FY17) declined by 28.27% to Rs 359.55 crore as against Rs 501.27 crore in the April-June quarter of the fiscal year 2015-16 (FY16), the company said in a filing to the Bombay Stock Exchange (BSE). 

Cairn India's total net income from operations during Q1 FY17 dropped by 28.24% to Rs 1,885.11 crore as compared to Rs 2,627.10 crore in Q1 FY16. 

The oil and gas exploration and production company during the quarter under review posted 11.17% dip in total expenses to Rs 1,901.69 crore as against  
Rs 2,140.82 crore in the corresponding quarter of previous fiscal. 

The company said in a press release on its website, "Normalised profit after tax was 88% up quarter on quarter (QoQ) at Rs 360 crore driven by higher EBITDA but was partly offset by higher depreciation, depletion and amortisation (DD&A) charges and forex losses." 

“The Cairn team has delivered a resilient performance, registering 88% increase in profit for the quarter on sequential basis. We have taken significant measures
 to drive cost efficiency and rationalise capital investment, resulting in free cash generation in a lower-for-longer oil price environment," Cairn India's chief financial officer and acting chief executive officer Sudhir Mathur said in a statement. 

Cairn, he said, remain committed to four projects - RDG Gas, Enhance Recovery at Bhagyam and Aishwariya as well as the tight oil projects.

"Sharp reductions in drilling and fracking costs coupled with learnings from Mangala EOR give us the confidence that we will be ready to  execute in a US $50 per barrel world within 12 months,” Mathur added. 

The stock of Cairn India on Thursday closed up 0.54% or Rs 0.95 at Rs 176.60 on the BSE.