Dhir: Looking forward

Mumbai, April 20: Cairn India Ltd, a Vedanta group company, today reported an 11 per cent drop in net profit for the fourth quarter ended March 31 because of higher forex losses.

The exploration company, which has a successful block in Rajasthan, posted a net profit of Rs 2,186.23 crore compared with Rs 2,457.79 crore in the same period last year.

The profit number lagged analysts’ estimates and came amid a marginal fall in overall revenues. Total income stood at Rs 3,651.34 crore against Rs 3,654.47 crore last year.

Net profit was bogged down by a forex loss of Rs 301.47 crore.

Reviewing its performance during the quarter and the year, Cairn India managing director Rahul Dhir said the company had completed another comprehensive review of the resource potential in the Rajasthan block.

Detailed studies using advanced geoscience tools and independent estimates of reserves and contingent reserves by DeGolyer and MacNaughton have showed that the potential resource for the block is now estimated at 7.3 billion barrels of oil equivalent in place, an increase of over 12 per cent.

“We believe this resource base can support 300,000 barrels of oil per day, equivalent to a contribution of around 40 per cent of India’s current crude output subject to more investments and regulatory approvals,” Dhir added.

In Rajasthan, Cairn India’s Mangala oilfield has been producing at 125,000 barrels per day for several months now. Its second largest field, Bhagyam, was commissioned around three months ago and is now being ramped up.

The board of directors approved a dividend policy that aims to maintain the payout at around 20 per cent of annual consolidated net profits.