Varun Shipping net profit up to $3.3m in year ended 31 March 2011

Varun Shipping Company managed to post a rise in net profit for the year ended 31 March 2011 despite lower revenue and income from freight and charter hire. The India-based firm posted net profit after tax of Rs147.5m ($3.3m) in 2010-11 compared to Rs125.5m in the previous financial year. Revenue dropped to Rs8.4bn compared to Rs9bn in the previous year while freight and charter hire income also fell to Rs49.1bn compared to Rs66.6bn a year ago, Seatrade Asia online reports.“Charter income was under pressure due to globally weak charter rates of aframax crude tankers and anchor handling towing supply (AHTS) vessels. LPG carrier rates were under pressure initially, but have improved during the latter part of the year,” Varun said in a statement. The improvement in net profit was also aided by the company opting out of the tonnage tax scheme in 2011-12, allowing for lower computation of taxable income. Varun presently owns and operates a fleet of 21 vessels comprising of 11 LPG carriers, three aframax crude tankers and seven AHTS vessels.