Performance Highlights

Fourth Quarter
Essar Shipping registered a total income of Rs.209.73 crore for the quarter ended March 31, 2007 compared to Rs.210.64 crore for the corresponding period of the previous year. EBIDTA for the quarter stood at Rs.81.40 crore (Rs. 52.66 crore), registering a growth of 54.58%. Net profit was Rs.38.20 crore (Rs.31.29 crore) after providing for Interest at Rs.23.17 crore
(Rs.9.54 crore), Depreciation of Rs.19.71 (Rs. 10.85 crore) and Provision for tax at 0.32 crores (Rs. 0.98 crore).

Full Year
Essar Shipping reported a total income of Rs. 1039.21 crore for the year ended March 31, 2007 as compared to Rs. 755.86 crore last year, an increase of 37.47%. EBIDTA stood at Rs. 320.72 crore (Rs.253.69 crore in the previous year), registering a growth of 26.42%.

After providing for i)Interest of Rs. 89.07 crore (Rs.21.58 crore), ii) Depreciation of Rs. 90.51 crore (Rs. 37.48 crore) and iii) Provision for Tax at Rs. 7.16 crore (Rs. 9.40 crore) the Company's Net Profit was at Rs. 133.98 cr (Rs. 185.23 crore). The Net Profit is not strictly comparable since the Profit of Previous year included Profit on Sale of Fleet of Rs. 70.70 crores as against Rs. 12.47 crore during the current year.

About Essar Shipping
Essar Shipping, part of Essar Group, 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
Essar Groupl is one of India's largest corporate houses, with interests spanning the core and infrastructure sectors of industry - steel, energy, power, communications, shipping & logistics and projects. It has an asset base in excess of US $ 10 billion (Rs. 40,000 crore). It employs 20,000 people and has offices in over 50 locations worldwide

Audited Financial Results for the year ended 31st March, 2007