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Cairn India Ltd on Tuesday reported a 45.77 per cent increase in its consolidated net profit for the second quarter of 2013-14 in comparison with the same quarter previous year.
The oil and natural gas exploration company reported a net profit of Rs 3,385.08 crore (Rs 2,322.18 crore) for the July-September 2013-14 period.
The increase in profit was primarily driven by the weakening of the rupee against the dollar, say analysts.
Earnings per share (EPS) shot up 45.60 per cent to Rs 17.72 (Rs 12.17) for the second quarter of the current year.
Cairn India has also decided to offer an interim cash dividend of Rs 6 per equity share of Rs 10 face value.
The company has reported revenues of Rs 4,650 crore (Rs 4,443 crore) for the second quarter.
The average dollar-rupee exchange rate during the period was Rs 62.1 against Rs 55.1 in the same quarter of the previous year.
The Cairn India stock closed at Rs 332.55, up 0.57 per cent, on the Bombay Stock Exchange on Tuesday.
“We remain optimistic on Cairn on the back of steady crude prices. Currency depreciation would support earning, while the management continues to guide for a ramp-up in production and higher payout,” said Rikesh Parikh, Vice-President (Institution Corporate Broking) at Motilal Oswal Securities Ltd.
“The company maintained its trajectory of gross production growth in Rajasthan at an average of 175,478 barrels of oil equivalent per day (boepd) during the quarter. The asset is currently producing nearly 178,000 boepd, and remains on track to deliver a 2013-14 exit production target of over 200,000 boepd,” said a press release from the company.
Cairn plans to implement the world’s largest enhanced oil recovery (EoR) programme, costing about Rs 3,000 crore, in the Mangala field in Rajasthan.
“The company is working with the Government for final approvals, after which full field implementation is expected in 2014-15,” it said.
Elango P., Whole-time Director and interim Chief Executive Officer, said that the explorer achieved gross operated production of almost 213,300 boepd during the second quarter.
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