Oil and gas company Cairn India has reported a fall in its net profit for the first quarter ended June 30 by 18.27 per cent on the back of higher pay out to the Government and drop in oil rates realisation for the quarter against the year-ago period.
The company’s net profit stood at Rs 3127.23 crore against Rs 3825.74 crore for the corresponding period last year.
Its total income from operations also slid to Rs 4062.93 crore against Rs 4440 crore in the quarter ended June 30, 2012.
Under the Rajasthan block Production Sharing Contract (PSC), the profit petroleum pay-out to the Government rose by 10 per cent to 30 per cent in the Development Area 1 (DA1) and the company paid an additional Rs 326 crore.
According to oil and gas analysts, this quarter also saw the company’s expenses increase on account of rise in operating costs, exploration costs, other administrative costs against the year-ago period. “In addition, the forex gain was higher for the company in the year ago quarter which contributed to the lower profits,” he added.
However, on a quarter-on-quarter basis, the company reported a rise in net profit from Rs 2563.60 crore reported in the previous quarter ended March 31, 2013. Cain Indian also announced a final dividend of Rs 6.5 per equity share.
The dividend will be paid to the shareholders by August 12.
The company’s scrip closed at Rs 307.85, down 0.63 per cent from its pervious close on the BSE.