Financial Performance

IV Quarter
Essar Shipping Limited (ESL) posted a total income of Rs.232.76 crore for the quarter ended March 31, 2005 as compared to Rs.247.21 crore in the corresponding period of the previous year. EBIDTA for the quarter stood at Rs.129.58 cr. (Rs.92.90 cr. in the corresponding period of the previous year), a growth of 39%. The net profit was Rs. 120.12 crore (Rs.41.33 crore), a growth of 190.63% after providing for finance costs of Rs.22.65 crore (Rs15.55 crore), depreciation of Rs.18.06 crore (Rs. 16.16 crore) and Reversal of Deferred Tax of Rs.30.58 crore .

Full Year (Consolidated)
Total Income for the year 2004-05 grew by 50.77% to 1112.54 cr. as compared to Rs. 737.89 cr. last year. The EBIDTA rose by 113.89% to Rs. 686.79 cr. (Rs.321.09 cr.). After providing for interest of Rs.140.49 cr. (59.38 cr.), depreciation of Rs. 105.35 cr. (Rs.83.94 cr.) Reversal of Deferred Tax of Rs.30.58 cr. and Provision for Tax pertaining to earlier years of Rs. 7.37 cr. Net Profit stood at Rs. 460.58 cr. (Rs. 155.78 cr.), a growth of 195.66%.

Commenting on the results, Shri Shashi Ruia, Chairman, said, " This is the best performance by the Company in its history and comes on the back of consistent good performance. Essar, with its track record and its thrust on logistics solutions, is well placed to consolidate its position of market leadership in the industry."

Financial Highlights (Consolidated)

	Total Income for the year ended 31st March 2005 increased to Rs. 1112.54 cr. as compared to Rs. 737.89 cr. in the previous year, an increase of 50.77%.
	EBITDA stood at Rs 686.79 crore for the year as against Rs 321.09 crore during the previous year, an increase of 113.89%.
	EBITDA margin on TCE basis was 74% as against 60% in the previous year.
	Cash Profit was at Rs 565.93 cr., as against Rs. 239.72 crore in the previous year, an increase of 136%.
	Net Profit after Tax increased to Rs 460.58 crore for the year ended 31st March 2005, as against Rs 155.78 crore in the previous year, an increase of 196%.
	EPS: (Annualized)
	As at March 2005	As at March 2004
	Rs. 15.26	Rs. 5.16

NOTE:

This release contains forward-looking statements regarding prospects for the Company's business, including outlook for the markets. Investors should make their investment judgements based on their own analysis. This release is for information only and must not be construed as an invitation to acquire the shares of the Company.

Audited Financial Results for the year ended 31st March 2005