Essar Shipping profit declines

Essar Shipping has recorded a 36.87 per cent decline in net profit at Rs. 12.65 crores for the second quarter ended September 2001, compared to Rs. 20.04 crores in same period of previous fiscal.

Total income in Q2 was higher at Rs. 108.56 crores as against Rs. 93.16 crores in corresponding quarter of last year.

For the first half ended September 2001, the net profit was up at Rs. 37.85 crores (Rs. 30.51 crores in H1 of last year) while total income stood at Rs. 248.87 crores (Rs. 194.40 crores).

According to Mr. Sanjay Mehta, managing director and CEO of the company, ``the geopolitical situation in Afghanistan will have negative impact on the shipping freight rates.

This coupled with the slowdown of world economy is expected to affect the industry earnings for the third and fourth quarters of the current financial year.''

ESL had mitigated this risks through by entering into various time charters with committed earnings of Rs. 122 crores for Q3 and Q4 he added. The company sold one Handysize bulk carrier in the period under review, earning a profit of Rs. 7.89 crores.

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