New Delhi: Beating estimates, Cairn India Ltd reported a 23% increase in third quarter profit after boosting production.
Net profit, including that of its units, was Rs291 crore in the three months ended 31 December compared with Rs236 crore a year earlier, the Gurgaon-based explorer said in an emailed statement.
The median estimate of 17 analysts surveyed by Bloomberg was a profit of Rs213 crore.
Cairn India’s Rajasthan field, which started operations in August, is expected to account for 20% of the country’s current output when production peaks by 2011.
The explorer benefits from selling crude at near-market prices, unlike state-run rivals Oil and Natural Gas Corp. Ltd and Oil India Ltd, which give discounts to refiners to help curb inflation.
The start of production from the Rajasthan field is driving profits, said Rohit Nagraj, a Mumbai-based analyst with Prabhudas Lilladher Pvt. Ltd Crude prices have increased and that pushes up profits.
Shares of Cairn India rose 1.05% to Rs270.45 on the Bombay Stock Exchange.
The earnings were announced after the market closed.