Essar Shipping Q3 net up 43pc to Rs 49-cr

NEW DLEHI: Ruias-promoted Essar Shipping today posted 43 per cent increase in profit after tax for the quarter ended December 31, at Rs 48.6 crore, against Rs 33.9 crore in the same quarter last year.

"Despite tough market conditions such strong performance is primarily because of the company's strategy to enter into long-term charter of the vessels which provides a natural hedge against the cyclical nature of the industry and ensures long-term visibility of revenues and profitability," the company's Managing Director A R Ramakrishnan said.

The revenue increased by 11 per cent to Rs 729.2 crore during the October-December quarter, 2011-12, as against Rs 658.8 crore in the year ago period.

Sea transportation business contributed Rs 317.4 crore to the topline, oilfields services - Rs 143.9 crore and logistics business - Rs 283.9 crore during the quarter under review.

Ramakrishnan did not give revenue projection for this quarter saying, "We will try to maintain the momentum".

Essar Shipping, which has a fleet of 25 vessels and has on order 10 new ships, generates main share of the sea transportation business by ferrying dry cargo. New ships are expected to join the fleet over the next 18 months.

It has one semi-submersible rig and 12 land rigs. Essar Shipping has already ordered two new jack-up rigs, which will be joining the fleet over the next 18 months.

Essar Shipping also manages a fleet of over 5,000 trucks for inland transportation of steel and petroleum products.