The Hindu Business Line : Varun Shipping Q2 profit surges by 26%

Mumbai, Oct. 30 Varun Shipping’s net profit for the second quarter ended September 30, 2007, has risen by 26 per cent to Rs 58 crore (Rs 46 crore) on account of revenue and profitability earned from induction of five new vessels in the fleet.

According to Mr Yudhishthir Khatau, Managing Director, the new vessels include two gas carriers, one crude oil tanker and two vessels for deepwater offshore.

The total income of the company also rose by 19 per cent to Rs 244 crore (Rs 205 crore). Other income contributes Rs 42 crore to this raise, which has been a result of foreign exchange gain on foreign currency loans as per the Revised Accounting Standard 11.

Acquisition plans

Mr Khatau said of the total $400 million that the company was committed to invest on acquisition of vessels, $320 million have been utilised, and the company is looking at acquiring one to two vessels with the remaining $80 million.

“We are likely to finalise the same by March 2008. Though our preference is on the offshore side vessel, we are open to look at dry bulk segment too, depending on whether we get a good price.”

Apart from the above acquisition plans, Varun Shipping plans to acquire rig, for which the company is awaiting board approval.

“We are examining proposals, but as of now, second hands are too expensive and first hands have long time for delivery,” he added.

Varun Shipping’s stock closed at Rs 70.30 on Tuesday with a loss of 6.95 per cent against previous day’s close.

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