The combination of forex losses and higher costs dragged Cairn India's net profits down by nearly 14 per cent in the three months ended December 31, 3012, the energy giant announced on Thursday.

Cairn India, a subsidiary of London-listed Vedanta, said its profit after tax (PAT) slipped to Rs 2,884.04 crore in the October to December quarter, from Rs 3,344.89 crore in the corresponding quarter of the previous fiscal.

Total income jumped from Rs 4695.17 crore in the December quarter of 2012 to a record level of Rs 5,011.28 crore in the December quarter of 2013, thanks to increased volumes.

Average gross production increased 5 per cent year-on-year to 224,493 barrels of oil equivalent per day (boepd). The company said higher production from its Aishwariya field and the improved pace of well construction paved way for increase in revenue from average gross production from the Rajasthan block, which produced 17.1 million barrels of oil during the quarter under review.

The company said in a statement, "The block remains on track to deliver the expected FY-14 exit production rate of over 200,000 boepd." During 2013, the company made three discoveries in Rajasthan and commercialized the Nagayalanka discovery in KG-Onshore block.

EBITDA (earnings before interest, tax, depreciation & amortization) jumped marginally to Rs 3, 592 crore.

Cairn India shares ended Thursday's trade at Rs. 324.65 apiece, 0.76 per cent higher than its previous close, on the Bombay Stock Exchange.