Cairn India shares slip despite 48 per cent jump in profit

Shares of Cairn India on Tuesday shed over 2 per cent on the bourses despite strong earnings for the quarter ended December 2012.

The company on Monday reported 48 per cent jump in its December quarter net profit to Rs 3,344.89 crore, against Rs 2,322.18 crore in the year-ago period. The profit was boosted by foreign exchange gain of Rs 235.71 crore, against a loss of Rs 785.81 crore in the preceding quarter.

Shares of the Cairn India, started the day in green, opening at Rs 347.50. However, after registering an intra-day high of Rs 349.90, the scrip shed 2.25 per cent to close the day at Rs 332.65 on the Bombay Stock Exchange.

Similarly, the scrip shed 2.32 per cent to Rs 332.40 on the National Stock Exchange.

Cairn India's profit was up despite fall in oil price realisation - the company got $96.2 for every barrel of crude oil produced in Q3 of current fiscal, compared to $101.2 a barrel in the same period last financial year.

On a per share basis, its earnings per share rose by 39 per cent to Rs 16.50 from the Rs 11.85 in Q3 FY12.

Cairn India looks to begin a $600 million exploration campaign in Rajasthan, Sri Lanka and South Africa aimed at raising oil production.