Essar Shipping Limited (ESL) has recorded an increase in its Net Profit to Rs. 110.37 crore (USD 25.23 million) for the quarter ended June 30, 2005 compared to Rs. 30.37 crore (USD 6.57 million) for the corresponding period in the previous year, representing an increase of 263%. Total income was Rs. 225.77 crore (USD 51.62 million) compared to Rs. 193.82 crore (USD 41.92 million) for the corresponding period of the previous year. The Net Profit for the Quarter includes profit on sale of fleet amounting to Rs. 68.57 crore (USD 15.68 million).

For comparative purposes, the Profit before Tax for the current quarter ended 30th June 2005 is higher by Rs. 15.81 crs (USD 3.61 million) as compared to the corresponding quarter in the previous year, an increase of 48.26%.

The gross fleet operating earnings of the Company were lower at Rs. 156.06 crore (USD 35.68 million) for the quarter ended 30th June 2005 as compared to Rs. 193.46 crore (USD 41.84 million) during the corresponding quarter in the previous year. The decrease was due to the sale of the Fleet.

Net Interest and Depreciation were Rs. 4.27 crore (USD 0.98 million) and Rs. 9.50 crore (USD 2.17 million) respectively, for the quarter ended June 30, 2005. During the corresponding period of the previous year, Interest and Depreciation were Rs. 28.80 crore (USD 6.23 million) and Rs. 21.93 crore (USD 4.74 million) respectively. The decrease in interest is on account of prepayment of loans and refinancing of debt.

The above results were taken on record at the meeting of the Board of Directors held on 22nd July 2005.