Financial Performance

Essar Shipping Limited (ESL) registered a growth of 52% in total income at Rs.249.87 crore for the quarter ended December 31, 2006 compared to Rs.164.43 crore in the corresponding quarter of the previous year. EBIDTA for the quarter stood at Rs. 91.22 crore (Rs. 43.89 crore in the corresponding period of the previous year). The Net profit at Rs. 43.53 crore (Rs. 31.23 crore) was higher by 39.38% after providing for Finance Costs at Rs. 22.50 crore (Rs.3.39 crore), Depreciation at Rs. 23.02crore (Rs. 8.59 crore), Provision for Fringe Benefit Tax at Rs.0.64 crore (Rs.0.42 crore) and Current Tax of Rs.1.33 crore (Rs.0.26 crore).

The above results were taken on record at the Board Meeting of the Company held on January 30, 2007.

About Essar Shipping

Essar Shipping provides sea transportation management services to the global energy industry, including US, European and Indian oil companies. The company owns 26 vessels with a diverse fleet comprising Very large Crude Carriers, Suezmax tankers, product tankers, Bulk Carriers, Mini Bulk Carriers, Handymax, tugs and Barges.

About Essar Group

The Essar Group is one of India's largest corporate houses, with interests spanning the core and infrastructure sectors of industry - steel, oil & gas, power, telecom & BPO, shipping & logistics and construction. It has an asset base in excess of US $ 6 billion (Rs. 27,000 crore). It employs 15,000 people and has offices in over 50 locations world-wide.

Unaudited Financial Results (provisional) for the quarter ended 31st December, 2006