CAIRN INDIA = RESULTS FOR Q2 FY 2012 QTR ENDING SEP,2011 = Exceptional Item brings down Profit = Next Qtr need watch

CAIRN INDIA

QUARTERLY RESULTS

FOR Q2 FY 2012 ENDING SEP,201

CAIRN INDIA has announced the consolidated results for the second quarter ending Sep,2011.

Net Sales stands at Rs.2652.20 Cr in Q2 FY 12 – compared to Rs.3712.67 in the previous quarter of Q1 FY 11 (down by -28.56%) and compared to Rs.2686.42 cr  in Q2 FY 11 (down by -1.27%).

Profit from Operations stands at Rs.2281.93 Cr in Q2 FY 12 – compared to Rs.2809.27 Cr in Q1 FY 12 (down by -18.77%) – and compared to Rs.1832.78 Cr in Q2 FY 11 (up by   24.51%).

There is an Exceptional item of expense in current Quarter for Rs.1355.18 Cr, details of which are in Note below, which has drastically reduced the Profit in current quarter. Its future normal, quarterly, liability (for each quarter) will need to be seen in next quarter.     

Profit before tax  has therefore come down to Rs.865.91 Cr in Q2 FY 12- compared to Rs.2817.47 Cr (down -69.27%) in Q1 FY 12 – and compared to Rs.1732.89 cr in Q2 FY 11 (down by -50.03%).

Consolidated Net Profit has come down to Rs.763.03 cr in Q2 FY 12 – from Rs.2726.56 cr  of Q1 FY 12 (down by      -72.01%) and from Rs.1585.08 Cr of Q2 FY 11 (down by -51.86%).

Basic EPS after Exceptional Items has come down to Rs.4.01 in Q2 FY 12, from Rs.14.33 in Q1 FY 12 and Rs.8.35 in Q2 FY 11. Half Yearly EPS for the 1^st and 2^nd Qtrs totally so far is Rs.18.34.Future EPS depends on the quarterly Cost recoverable amount and Profit Petroleum payable to Govt – on one hand; and on production improvements. Considering the company’s efficiency in exploration and Production, its future is considered Bright. But immediate profitability levels need to be watched in next 2 Qtrs.

Current MP of the share is Rs.307.15. 52 week high price  is Rs.372.35 and 52 week low price is Rs.249.30 on a FV of Rs.10.

Note : Royalty paid by ONGC with respect to the RJ-ON-90/1 block has been treated as cost recoverable resulting in a reduction in revenues and profit after tax for the current quarter by an estimated amount of Rs.2514.49 Cr. The said amount of Rs.2514.49 CRs includes Rs.1355.18 Cr and Rs.102.84 Cr upto June 30, 2011 and March 31, 2011 respectively, which has been disclosed as an exceptional item in the above results.

In respect of the RJ-ON -90/1 block, revenues of Cairn India Group for the current quarter and six month are net of the estimated share of profit petroleum payable to Government of India of  Rs.158.34 Cr and Rs.345.93 Cr respectively.

The latest press release dt 26.12.2011 by the company (CAIRN LANKA PVT LTD) indicating its first success in Lanka says as below :-

Cairn Lanka (Private) Limited, a wholly owned subsidiary of Cairn India Limited, has successfully completed the first phase of the exploration campaign in Sri Lanka Block SL-2007-01-001.

The exploration programme involved the acquisition, processing and interpretation of 1,753 sq km of 3D seismic data and a three well deep water drilling programme. The seismic programme exceeded the phase I commitment by 20% and the drilling programme exceeded the drilling depth commitment by 50%.

This programme resulted in two successive gas and condensate discoveries: the CLPLDorado- 91H/1z well and, the CLPL-Barracuda-1G/1 well. The third well, CLPL-Dorado North 1- 82K/1 was plugged and abandoned as a dry hole on 14th December, 2011.

The operations were conducted safely, in accordance with the highest global standards, within schedule, budget and in compliance with Sri Lankan regulations.

Cairn Lanka’s successful drilling programme - the first in Sri Lanka in 30 years – has established a working petroleum system in the frontier Mannar Basin.

Following this success, Cairn Lanka has notified the government of Sri Lanka of its intention to enter the second phase of exploration.

CONSOLIDATED RESULTS

CAIRN INDIA	Q2 FY 12CON	Q1 FY12CON	% DIF	Q2 FY 11 CON	% DIF
Net Sales	265,220.00	371,267.00	-28.56	268,642.00	-1.27
Increase in SIT/WIP	-371	564	-165.78	2,682.00	-113.83
Employees Cost	2,347.00	1,908.00	23.01	2,996.00	-21.66
Depreciation	31,422.00	34,601.00	-9.19	27,561.00	14.01
Other Expenditure	3,629.00	53,267.00	-93.19	52,125.00	-93.04
Total Expenditure	37,027.00	90,340.00	-59.01	85,364.00	-56.62
Profit from Operations	228,193.00	280,927.00	-18.77	183,278.00	24.51
Other Income	6,198.00	5,279.00	17.41	2,820.00	119.79
Interest	12,282.00	4,459.00	175.44	12,809.00	-4.11
Exceptional items	135,518.00	-		-
Profit before tax	86,591.00	281,747.00	-69.27	173,289.00	-50.03
Tax Expense	10,288.00	9,091.00	13.17	14,781.00	-30.4
Net Profit	76,303.00	272,656.00	-72.01	158,508.00	-51.86
Consolidated Net Profit	76,303.00	272,656.00	-72.01	158,508.00	-51.86
Face Value (in Rs.)	10	10	0.00	10	0
Paid-up Equity	190,258.00	190,225.00	0.02	189,745.00	0.27
Basic EPS before EI(Rs.)	11.13	14.33	-22.33	8.35	33.29
Diluted EPS before EI (Rs.)	11.1	14.28	-22.27	8.31	33.57
Basic EPS after EI(Rs.)	4.01	14.33	-72.02	8.35	-51.98
Diluted EPS after EI(Rs.)	4	14.28	-71.99	8.31	-51.87
Public Holding (%)	47.9	37.8	26.72	37.64	27.26

ANNOUNCEMENTS BY CAIRN

26-12-2011        Press release of Cairn Lanka (Private) Ltd., the Company's wholly-owned subsidiary, with respect to the successful completion of the first phase of the exploration campaign in Sri Lanka Block SL-2007-01-001 and now proposes to enter into the second phase of exploration.

19-12-2011        Cairn India Limited has informed the Exchange that post the sale of majority shareholding by Cairn UK Holdings Limited to the Vedanta Group, the Vedanta Group Companies, i.e. Twin Star Mauritius Holdings Limited, Sesa Goa Limited and Sesa Resources Limited are the new Promoters of the Company. Consequent to this change, the Board of Directors ('the Board') has on December 16, 2011 appointed Mr. Navin Agarwal, Mr. Tarun Jain and Ms. Priya Agarwal, as Additional Directors on the Board of Cairn India Limited. Mr. Navin Agarwal has also been appointed as the Chairman of the Board. Additionally, the Board has also accepted the resignations of Sir Bill Gammell and Ms. Jann Brown, nominee Directors of Cairn UK Holdings Limited, from the Board. All the existing independent Directors and Mr. Rahul Dhir, Managing Director &.CEO will continue to be Directors of the Company.    -

14-11-2011        Mannar Basin Sri Lanka Drilling Campaign

20-10-2011        consolidated Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 265220 lacs for quarter ending on 30-SEP-2011 against Rs. 268642 lacs for the quarter ending on 30-SEP-2010. Net Profit / (Loss) of Rs. 76303 lacs for the quarter ending on 30-SEP-2011 against Rs. 158508 lacs for the quarter ending on 30-SEP-2010.

20-10-2011        standalone Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 321 lacs for quarter ending on 30-SEP-2011 against Rs. 70 lacs for the quarter ending on 30-SEP-2010. Net Profit / (Loss) of Rs. (2830) lacs for the quarter ending on 30-SEP-2011 against Rs. (7602) lacs for the quarter ending on 30-SEP-2010.

03-10-2011        press release of Cairn Lanka (Pvt) Ltd,., Company's wholly owned subsidiary Company giving update on the Sri Lanka Frontier Exploration Drilling Campaign.

25-05-2011        consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 1027793 lacs for year ending on 31-MAR-2011 against Rs. 162303 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 633440 lacs for the year ending on 31-MAR-2011 against Rs. 105110 lacs for the year ending on 31-MAR-2010.

25-05-2011        standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 239 lacs for year ending on 31-MAR-2011 against Rs. 320 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. (21267) lacs for the year ending on 31-MAR-2011 against Rs. (6895) lacs for the year ending on 31-MAR-2010.

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