Essar Shipping Limited (ESL) recorded a Total Income of Rs. 298.91 crore for the quarter ended September 30, 2006, a growth of 91.3% over the corresponding quarter of the last year. Net Profit at Rs. 15.28 crore grew by 23.8% (Previous period Rs. 12.34 crore) after providing for Interest at Rs. 23.14 crore (Rs.4.38 crore), Depreciation at Rs. 24.57 crore (Rs. 8.54 Crore), and Tax at Rs. 1.67 crore (Rs. 0.97 crore). The outgo for Interest and Depreciation has increased due to the acquisition of two VLCCs in the last quarter of previous year.

Total income on for the six months ended September 30, 2006 stood at Rs. 579.61 crore as compared to Rs. 382.00 crore in the corresponding period of the previous year, representing an increase of 51.7%.

EBITDA for the six months ended September 30, 2006 stood at Rs 148.10 crore as against Rs. 157.14 crore during the same period of last year. The EBITDA for the previous year included Profit on Sale of vessels of Rs. 68.57 crore.

Net Profit after Tax was Rs 52.25 crore for the six months ended September 30, 2006, as against Rs 122.71 crore for the corresponding period of the previous year.

The freight rates in the tanker segment remained volatile during the quarter with the higher availability of vessels. The high bunker prices put further pressure on the margins of the shipping companies. In the Bulker segment too, even though freight rates remained high, the higher bunker prices led to higher operating costs.

The above results were taken on record at the meeting of the Board of Directors held on October 31, 2006.

About Essar Shipping
Essar Shipping is a leading sea transportation company, with a special focus on transportation solutions for the global energy business. A strong management team of experienced marine professionals steers the company, maintaining intense customer focus, world class operations, an impressive safety record and consistent financial performance. The Company owns a modern fleet of 27 vessels, including VLCCS, tankers and bulk carriers. The Company has long standing relationships with major global oil companies like Shell, Exxon Mobil, Chevron BP Aramco and Texaco. is ISO 9000:2000 and ISO 140001 certified and has been recognized as the "Safest Indian Shipping Company" by DG Shipping, India in 2004.

About Essar Group
Essar Shipping is part of the Essar Group, which is one of India's largest corporate houses with interests spanning the manufacturing and services sectors; Steel, Oil & Gas, Power, Shipping & Logistics, Telecom & BPO and Construction. The group has an asset base of USD 6 billion (Rs. 27,000 crores). It employs over 15,000 people

Unaudited Financial Results (provisional) for the quarter ended 30th September, 2006