The net profit was Rs. 30.89 crore (Rs.21.10 crore) after providing for finance costs of Rs.67.44 crore (Rs.14.56 crore), depreciation of Rs.21.53 crore (Rs. 16.58 crore).

The above results were taken on record at the meeting of the Board of Directors held on 21st October 2004.

Key Financial Highlights for the quarter ended September 30, 2004

• EBITDA at Rs 118.73 crore for the quarter ended 30th September 2004 as against Rs 53.55 crore during the corresponding period of the previous year, representing an increase of 121.7%.
• EBITDA margin of 68.7% as against 59% in the corresponding period of the previous year.
  Cash Profit of Rs 51.29 crore as against Rs. 38.99 crore for the corresponding period of the previous year, an increase of 31.5%.
• Profit after Tax increased to Rs 30.89 crore for the quarter ended 30.09.2004, as against Rs 21.10 crore for the corresponding period of the previous year representing an increase of 46.4%.
• EPS: (Not Annualized)

Markets

Crude Transportation: The year started on a weaker note for this sector. This was on account of increase in the tonnage availability, declining enquiry levels, reduced imports by China and decrease in crude oil production by OPEC in light of treat of reduction of crude oil prices. The month of June saw the charter rates firming up again for the VLCC and Suezmax tankers. This increase was backed by resumption of crude oil production from Basra in Iraq, more healthy demand from India and China and increased demand for gasoline in USA. The markets were again stable during the months of August and mid September. During second half of September and early October the markets started firming up again. This was backed by increased demand for VLCC for the AG-USA route. The hurricane in US Gulf also lead to an increase in freight rates, due to disruption of tanker traffic.
Source: Clarksons

Bulk Carriers: As witnessed in the crude oil sector, the dry bulk sector also showed a decline in the freight rates. This is evident from the Baltic Dry Bulk Index falling from 5110 points in the beginning of April 2004 to 2876 points by the end of June 2004. The main reason for the steep decline in the freight rates for the Dry Bulk Carriers was reduced imports and enquiries from China and increased prices of coal. The rates started picking up again during the second quarter of the FY, backed by enquiries from China, Japan, India and Europe. The Baltic Dry Index rose to 4161 points by end September indicating a healthier market for bulk carriers.
Source: Clarksons

Outlook
The demand for dry bulk carriers will be mainly driven by the following factors:

• Coal shortage in Asia and Europe will continue to drive the Dry Bulk market with seaborne coal trade expected to increase further, despite an expected decrease in Chinese exports of 10 million tons to a total of 80 million tons.
• The new Chinese power plants are expected to require an additional 50 million tons of thermal coal in 2004. The new Japanese power plants combined with ongoing, but decreasing, nuclear generating capacity problems and low coal stockpiles in Japan are leading to a large and almost desperate Japanese demand for thermal coal.
• The Chinese steel boom leads to increasing demand of hard coking coal. Australian exports to China are expected to increase. Moreover Canadian coal exports to China are expected to increase by 2 mn tonnes.