Operationally, the performance has shown a decline but it is forex gain which came to its rescue and helped the company post a better numbers. Its net consolidated revenue came in at Rs.4063 crore, down 7% (QoQ) and down 8% (YoY). Yet, sequentially, it ended the quarter with a 22% rise in net profit at Rs.3127 crore, though YoY, it was down 17%. This is because, YoY, the forex gain was also lower – in current Q1 forex gain came in at Rs.682 crore while in Q1FY13, it was at Rs.866 crore. In Q4Fy13, it had had a forex loss of Rs.3 crore. This forex gain is a direct benefit of the rupee depreciation. In terms of production, Q1 saw the highest ever gross operated production of 212,442 barrels of oil equivalent per day (boepd), a 5% increase (QoQ). It also recorded an average daily production of 173,517 boepd for Rajasthan block during the quarter. The company has set itself a year-end target of 200-215,000 bopd from the Rajasthan block.

Another important aspect to be noted is that under the Rajasthan block Production Sharing Contract (PSC), the profit petroleum pay-out to the Govt rose from 20% to 30% in the Development Area 1 (DA1) and the Company paid an additional Rs.326 crore.  Production from Barmer Hill and other satellite discoveries expected to commence this fiscal year. The gross cumulative Rajasthan development capital expenditure as on 30 June, 2013 was US$ 3.9 billion, of which US$ 107 million was spent during the quarter including US$ 19 million in DA 2. The average US$ to rupee exchange rate for the quarter was Rs. 55.78 vs Rs.54.10 for the same quarter of the previous year. Its average oil price realization was at US$94.6/barrel, down 6% QoQ and YoY. Average gas price realization was at US$4.9/mscf, down 4% Qoq but YoY, it rose 9%.

Cairn India has a portfolio of nine blocks, located in four strategically focused areas: one in Rajasthan; two on the west coast of India; five on the east coast of India (including one in Sri Lanka) and one in South Africa. Cairn India is the operator in all the blocks except KG-ONN-2003/1, where as per the PSC, Cairn India is the operator during the exploration phase and ONGC becomes the operator in the development and production phase.