Cairn India’s PAT up by 18% in Q4

Cairn India growth story is getting better and better with every passing quarter. Owing to increase in production from its Rajasthan assets, the company posted robust numbers during Q4FY14. Company’s crude oil production reached 224429 boepd showing an increase of 11% on YOY basis. During Q4, production from Rajasthan block increased to 190881 boepd as against 168594 boepd achieved during same period last year showing a growth of 13%.  Owing to this increase in production, company’s top line and bottom line improved significantly. Revenue during the quarter ending March 2014 shot up to Rs 5049 crore, while it’s EBITDA touched Rs 3654 crore, showing an increase of 16% cent and 26 % respectively as against the corresponding period last year. 
During this period Cairn India’s PAT also increased by 18% to Rs 3035 crore in comparison to Rs 2564 crore achieved during Q4FY13. Increase in PAT was mainly due to increase in investment income and one time charge on ESOP. Company’s EPS has also augmented from Rs 13.30 to Rs.17.75, showing a growth of 33%. On yearly basis company’s revenue reached Rs 18762 crore while EBITA remained at Rs 13877 crore, showing a growth of 7% each in comparison to FY13. 
Due to this flamboyant performance company’s board declared a final dividend of Rs 6.5 per equity share. During Q4 company have tested three exploration wells that resulted in two new discoveries, one in Guda-south-7 and one in Barmer hill. In April another new discovery has been made in Kaameshwari West8. On the production side company achieved the FY14 target exit rate from Barmer field of 200,000 boepd. In Q4, it produced 17.2 mmboe of oil equivalent from the block, achieving overall production for the fiscal of 66.3 mmboe. Company has also achieved the cumulative production of 200 mmbbls from the Barmer block. Performance wise Cairn India added 45 new wells during Q4 while a total of 129 wells have been added for production during FY14 in Rajasthan block. This led to 7% spurt in overall production that reached 181530 boepd during FY14. 
On the performance of the company Cairn India’s whole time Director Elango P said, “In Rajasthan we achieved a landmark cumulative oil production of 200 million barrels and a 200,000 boepd production milestone in March 2014. We have also significantly added to our resource base by delivering a rapid exploration and appraisal drilling program with a success ratio of  50%, establishing 6 discoveries and adding over 1 billion barrels  of oil and gas in-place.”