As expected, the performance of Cairn India was very bad. The company, for quarter ended 31^st March 2016 posted its biggest, record quarterly loss of Rs.10,948 crore v/s Rs.241 crore in Q4FY15. This can be blamed on two reasons – impairment loss on goodwill and non-producing oil and gas assets due to declining oil prices. The company has stated that due to decline in crude oil prices in the international market, the Group has recorded an impairment on the carrying value of goodwill and some of its non-producing oiland gas assets aggregating to Rs 11,390 crore and Rs 284 crore respectively. The impairment of Rs.11,674 crore largely reflects the lower crude price, prevailing discount on oil produced from Rajasthan block as well as adverse long term impact of revised cess. The company’s turnover for the quarter was down 36% (YoY) at Rs.1717 crore.

It was a decline all around. Production fell 8% to 2,06,170 barrels of oil and oil equivalent gas in Q4. Rajasthan oil field, its main bread winner, produced 5% lesser oil at 1,64, 826 bpd. Given the lower crude prices, naturally, its realisations also dipped – it was at an average of US$27.8/barrel, down 43% (YoY). The only silver lining - gas price rose 19% to US$7.4/ million standard cubic feet.

The company ended FY16 with a net loss of Rs.9432 crore v/s profit of Rs.4480 crore in FY15. Yet, despite the record loss, Cairn India declared a dividend of Rs.3/share.