Weak Q1FY17 results fail to dampen Cairn India's spirits

Cairn India has declared its Q1FY17 results on Thursday. The company’s revenue has decreased by 28.24 per cent to Rs 1885 crore in Q1FY17 as compared to same period in previous fiscal year. Its EBITDA too has reduced by 38.45 per cent to Rs 794 crore in Q1FY17 on a yearly basis. Cairn India’s net profit also has dropped by 56.94 per cent to Rs 360 crore in Q1FY17 as compared to previous financial year. The company’s net profit margin has contracted heavily and stands at 19.07 per cent in Q1FY17 against 31.78 per cent in Q1FY16.

Cairn India is working towards completion of merger with Vedanta. The merger would generate value for the shareholders and de-risk the company.

Cairn India is predicting regarding multiplying its gas production by four times, which will support resource maximisation from the Rajasthan block. The expected ultimate recovery from the Raageshwari Deep Gas field has been upgraded by over 25 per cent.

The share price of Cairn India has increased by 3.91 per cent on bourses in early trades; and is trading at Rs 181 on an intraday basis.

Cairn India is an independent oil and gas exploration and production company. The company is part of the Vedanta Group. It has a portfolio of nine blocks - one block in Rajasthan, two on the west coast and four on the east coast of India and one each in Sri Lanka and South Africa. Cairn India is producing oil and gas from Rajasthan, Ravva and Cambay.