Cairn India (Cairn) came out with mixed bag in Q1FY17, where revenue and PAT were below our expectation due to lower than expected realization and higher than expected DDA while EBITDA was above expectation on the back of lower other expenses and adoption of Ind AS. Revenues declined 28.2% YoY to Rs18.9 bn due to 33% fall in oil realization to US$37.9/bbl. Also, its net production volume declined 4% due to lower production from Rajasthan basin. EBITDA decreased 41% YoY to Rs7.9 bn owing to lower volume and realization. However, it came above expectation due to better cost management and adoption of Ind AS. Further, due to change in accounting policy, DDA expenses increased 9% YoY to Rs8.1 bn. Consequently, its net profit...