Cairn India (Q3 FY14)

India Infoline News Service | Mumbai |

Cairn India recorded net sales of Rs50bn for Q3 FY14 which was higher than our estimates.

CMP Rs325, Target Rs370, Upside 13.8%

  • Net sales at Rs50bn grew 16.9% yoy and were better than expectations. Net working interest production for Q3 FY14 was at 140,830boepd, an increase of 10% yoy and 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 190,000bopd

  • PAT was below expectations owing to one-time Rs1.5bn hit on account of outstanding stock liabilities revaluation

  • 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 Rs370

Result table
(Rs m)
Q3 FY14
Q3 FY13
% yoy
Q2 FY14
% qoq
Net sales
50,000
42,776
16.9
46,499
7.5
Inc/(dec) in stock
23
(13)
(276.3)
30
(22.0)
Personnel costs
(1,853)
(155)
1,093.4
(271)
584.2
Operating expense
(2,928)
(1,934)
51.3
(2,962)
(1.2)
Cess
(7,735)
(7,087)
9.1
(7,293)
6.1
Other expense
(585)
(725)
(19.3)
(678)
(13.7)
Operating profit
36,922
32,862
12.4
35,325
4.5
OPM (%)
73.8
76.8
(298) bps
76.0
(212) bps
Depreciation
(5,948)
(4,824)
23.3
(5,465)
8.8
Exploration w/off
(1,003)
(277)
262.0
(513)
95.7
Interest
(91)
(52)
74.7
(110)
(17.4)
Other income
1,403
1,819
(22.8)
1,109
26.5
Forex fluctuation
(1,290)
2,357
(154.7)
4,292
(130.1)
PBT
29,992
31,884
(5.9)
34,637
(13.4)
Tax
(1,152)
(323)
256.5
(787)
46.5
Effective tax rate (%)
3.8
1.0
2.3
Adjusted PAT
28,840
31,561
BSE 285.40 2.55 (0.90%)
NSE 285.35 2.30 (0.81%)

***Note: This is a NSE Chart

 

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