Cairn Energy, the FTSE 100 oil and gas company, reported record revenues as it swung back into profit last year and raised expectations that the sale of its Indian assets would be approved.

Sir Bill Gammell, chief executive, said he was hopeful that Cairn’s proposed sale of a controlling stake in its Indian subsidiary to UK-listed miner Vedanta Resources would be put to the country’s cabinet for approval by the end of the month.