Cairn Indias Elango resigns
By Rahul Kamat
In a big blow to Cairn India, P Elango, Interim CEO & Wholetime Director, has stepped down from the company after an 18 year-long association. Under Elango's leadership, Cairn delivered 200,000 boepd from the Rajasthan block and achieved record levels of financial revenue and profitability. The company's top-line, in Q4FY14 increased by 15.7 per cent year-on-yer to Rs 5,049cr due to increase in both volumes as well as realisations. The company's gross production averaged 224,429 boepd (+11.0% y-o-y) during the quarter. Meanwhile, as the announcement struck Dalal Street, Cairn India's stock dipped to Rs 331.25, down by 1.13 per cent from its previous close of Rs 333 at 11:45 AM. "The resignation of P Elango will not hamper Cairn's strategy, but now it depends on how Vedanta, the parent company, will be able to deal with such a blow," said Vinay Rachh, Senior Analyst, Angel Broking. The company has received approvals to increase production rate from the Aishwarya field to 20 kbpd. Further, it will start Mangala Polymer flood EOR implementation from FY2016. However, production growth from the Rajasthan block is likely to be muted in FY2015. Moreover, there are various untapped exploratory upsides in Barmer Hills and other fields waiting to be developed and commercialised. Currently, various schemes related to exploratory drillings and optimisation of producing fields are awaiting approvals from the government. Cairn targets to invest $3 billion during FY2014-16 to drill approximately 450 wells. Meanwhile, Sudhir Mathur, CFO, has taken over the additional responsibility of leading the organisation in the interim.