The India-based company recorded net profit of INR486m in the quarter ended 31 December 2011, up 43.3% compared to INR339m in the same period of 2010.
Third quarter revenue came up to INR7.29bn, an 11% year-on-year increase from INR6.59bn.
“Despite tough market conditions such strong performance is primarily because of the company's strategy to enter into long-term charter of vessels, which provides a hedge against the cyclical nature of the industry and ensures long term visibility of revenues and profitability,” said AR Ramakrishnan, managing director at Essar Shipping.
The company took delivery of tow new mini-capesize vessels recently. Most of Essar Shipping's vessels are locked in long term contracts for minimal exposure to the spot markets.
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