Cairn India's profits double in Q2 to Rs 779 crore

Oil and exploration major Cairn India, a Vedanta Plc entity has come out with its earnings post market hours on Friday, October 2016. Beating street estimates, Cairn India has doubled its profitability to Rs 779 crore as against Rs 359.55 crore in the previous quarter which is the highest in the last one and a half years.

Total revenue during the quarter has increased by 8.1 per cent to Rs 2,038.6 crore on a sequential basis as discount to Brent for Rajasthan crude slipped substantially from USD 8.2 a barrel to USD 4.3 a barrel, the company said in a release.

Realisation is up by 10 percent Q-o-Q to USD 41.8/boe (brent of oil equivalent) as Rajasthan crude realisation has increased by 11 per cent to USD 41.6 a barrel. However, Brent price was relatively flat on average basis at USD 45.8 a barrel in Q2.

On operational front, EBITDA has grown by 31 per cent Q-o-Q to Rs 1,039.1 crore, highest in last five quarters. Margin has expanded by 760 basis points to 51 per cent in Q2 due to higher revenue and reduction in operating cost. Operationally performance was a beat on all the estimates far above what the analysts were working with.

Share price movement of Cairn has been a testimony to the earnings as it has increased by more than 30 per cent from the previous quarter.