Cairn India (Q1 FY14)

India Infoline News Service | Mumbai |

Cairn India recorded net sales of Rs40.6bn for Q1 FY14 which was in line with our estimates.

CMP Rs308, Target Rs360, Upside 17%
  • Net sales at Rs40.6bn de-grew 8.5% yoy and were in line with expectations. Net working interest production for Q1 FY14 was at 132,087boepd, an increase of 3.8% yoy and 4.3% qoq
  • With increase in production, net sales declined on back of 1) higher profit petroleum payout to the government 2) Lower crude realizations (-3% yoy in rupee terms) 
  • Realization for Rajasthan crude was at lower end of the guided discount of 8-13% of Brent
  • Rajasthan asset gross average production showed sequential uptick and is currently producing 180,000bopd
  • Company has maintained its capex guidance of US$3bn over the next three years with strong focus on Rajasthan exploration
  • Maintain BUY with a 9-month price target of Rs360 
Result table
(Rs m)
Q1 FY14
Q1 FY13
% yoy
Q4 FY13
% qoq
Net sales
40,629
44,400
(8.5)
43,634
(6.9)
Inc/(dec) in stock
32
180
(82.0)
32
2.2
Personnel costs
(143)
(322)
(55.6)
(196)
(27.2)
Operating expense
(9,527)
(8,718)
9.3
(9,872)
(3.5)
Admin expense
(893)
(619)
44.2
(1,016)
(12.0)
Operating profit
30,099
34,921
(13.8)
32,582
(7.6)
OPM (%)
74.1
78.7
(457) bps
74.7
(59) bps
Depreciation
(5,193)
(4,373)
18.7
(4,747)
9.4
Exploration w/off
(1,001)
(352)
184.2
(3,657)
(72.6)
Interest
(105)
(295)
(64.5)
(152)
(31.0)
Other income
1,251
964
29.7
2,219
(43.6)
Extra ordinary items
6,820
8,663
(21.3)
(28)
-
PBT
31,871
39,528
(19.4)
26,218
21.6
Tax
(599)
(1,271)
(52.9)
(582)
2.9
Effective tax rate (%)
1.9
3.2

2.2

PAT
31,272
38,257
(18.3)
25,636
22.0
PAT margin (%)
77.0
BSE 285.40 2.55 (0.90%)
NSE 285.35 2.30 (0.81%)

***Note: This is a NSE Chart

 

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