Cairn India - 4QFY2013 Result Review - Angel Broking

Cairn India 4QFY2013 results which were below our expectations on the profitability front whereas top line was in line with our expectations. The company's top line increased 19.5% yoy to Rs. 4,363cr (in line with our expectation of Rs. 4,393cr) due to higher volumes and higher rupee realizations. The company's gross production averaged 202,014boepd (+12.0% yoy) during the quarter. Although gross crude oil realization decreased by 9.1% yoy to US$100.6/bbl, INR depreciation against the USD offset this impact. EBITDA grew by 9.3% yoy to Rs. 3,258cr; however, EBITDA margin contracted by 698bp yoy to 74.7%.

The company recorded an exceptional forex loss of Rs. 3cr on account of forex fluctuation during 4QFY2013. Excluding this exceptional loss, adjusted net profit grew by just 6.8% yoy to Rs. 2,566cr (below our estimate of Rs. 2,819cr). Reported net profit grew by 17.3% yoy to Rs. 2,564cr.

We maintain our Buy rating on the stock with a target price of Rs. 340.

Source : Equity Bulls

Keywords