Essar Shipping posts Rs 55 cr profit in Jan-Mar qtr

Essar Shipping today reported a net profit of Rs 55 crore for the quarter ended March 31, 2012.

"This quarter has shown a strong performance based on our strategy of deploying the vessels on long term charters together with the drilling business contributing significantly to the financial performance of the company," Essar Shipping Ltd Managing Director A R Ramakrishnan said.

Essar Shipping registered revenues of Rs 845 crore during the quarter.

The company which is focussing on its drilling and logistics business, expects to earn a revenue of about $135 million (approximately Rs 729 crore) during the current financial year (2012-13).

"This year will see a significant jump in our bottom line as revenues from the land rigs and our drilling business will also be added to the financials," he said.

Last year, the ports business of Essar Shipping Ports and Logistics was demerged and subsequently Essar Ports and Essar Shipping were listed on the bourses in June 2011.

Essar Shipping recently bagged orders for two Land rigs one from Brunei and the other from an Indian company for totalling USD 25 million in value terms.

"Going forward, we expect to retain our ability to do long-term contracts, which will be more comfortable and provide steadiness of revenue stream and profitability," Ramakrishnan said.

Shares of Essar Shipping were trading at Rs 31.25, up 6.84 per cent on the BSE.