Cairn India (Q2 FY14)

India Infoline News Service | Mumbai |

Cairn India recorded net sales of Rs46.5bn for Q2 FY14 which was lower than our estimates.

CMP Rs332, Target Rs370, Upside 11.4%
 
  • Net sales at Rs46.5bn grew 4.7% yoy and were lower than expectations. Net working interest production for Q2 FY14 was at 132,862boepd, an increase of 2.7% yoy and 0.6% qoq

  • Realization for Rajasthan crude was at higher end of the guided discount of 8-13% of Brent

  • Rajasthan asset gross average production showed sequential uptick and is currently producing 178,000bopd

  • Company has maintained its capex guidance of US$3bn over the next three years with strong focus on Rajasthan exploration

  • Company has declared an interim dividend of Rs6 per share

  • Maintain BUY with a 9-month price target of Rs370

Result table
(Rs m)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Net sales
46,499
44,431
4.7
40,629
14.4
Inc/(dec) in stock
30
76
(60.9)
32
(8.6)
Personnel costs
(271)
(360)
(24.8)
(143)
90.0
Operating expense
(2,962)
(1,807)
64.0
(2,404)
23.2
Cess
(7,293)
(7,170)
1.7
(7,123)
2.4
Other expense
(678)
(655)
3.6
(893)
(24.1)
Operating profit
35,325
34,516
2.3
30,099
17.4
OPM (%)
76.0
77.7
(171) bps
74.1
189 bps
Depreciation
(5,465)
(4,515)
21.0
(5,193)
5.2
Exploration w/off
(513)
(262)
95.3
(1,001)
(48.8)
Interest
(110)
(188)
(41.3)
(105)
5.6
Other income
1,109
2,226
(50.2)
1,251
(11.4)
Forex fluctuation
4,292
(7,858)
(154.6)
6,820
(37.1)
PBT
34,637
23,918
44.8
31,871
8.7
Tax
(787)
(697)
12.9
(599)
31.3
Effective tax rate (%)
2.3
2.9
1.9
Adjusted PAT
33,85
BSE 285.40 2.55 (0.90%)
NSE 285.35 2.30 (0.81%)

***Note: This is a NSE Chart

 

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