Essar Shipping Limited (ESL) has recorded a Total Income of Rs. 273.10 crore (USD 66.56 million) for the quarter ended 30th June 2007 as compared to Rs. 278.89 crore (USD 60.05 million) for the corresponding period in the previous year. Total Income includes Exchange Gain of Rs. 49.92 crore (USD 12.17 million) relating to liabilities on acquisition of fixed assets in terms of Accounting Standard 11 which has become effective from 1st April 2007.

The Net Profit After Tax of the Company was Rs. 71.15 crore (USD 17.34 million) for the quarter ended 30th June 2007 as compared to Rs. 36.97 crore (USD 7.96 million) for the corresponding period in the previous year, representing an increase of 92%.

The EBITDA for the quarter ended 30th June 2007 was Rs. 118.25 crore (USD 28.82 million) as compared to an EBITDA of Rs. 82.44 crore (USD 17.75 million) in the corresponding quarter of the previous year. The EBITDA margin on TCE basis (adjusted for Other Income, Foreign Exchange Variance and Profit from Sale of Vessel) for the quarter ended 30th June 2007 was 54% as against 63% during the quarter ended 30th June 2006. During the quarter, ESL sold one Product Tanker, MT Nand Hari and acquired on Capesize Bulk Carrier, MV Govind Prasad.

Net Interest and Depreciation were Rs. 22.15 crore (USD 5.40 million) and Rs. 22.81 crore (USD 5.56 million) respectively, for the quarter ended June 30, 2007. During the corresponding period of the previous year, Interest and Depreciation were Rs. 20.26 crore (USD 4.36 million) and Rs. 23.21crore (USD 5.00 million) respectively.

The above results were taken on record at the meeting of the Board of Directors held on 30th July 2007.

Unaudited Financial Results for the Quarter Ended 30th June 2007