*Varun Shipping Company* disclosed a steep drop in standalone net profit for
the quarter ended December 2008. During the quarter, the profit of the
company declined 30.63% to Rs 511.17 million from Rs 736.88 million in the
same quarter last year.

Net sales for the quarter rose 15.15% to Rs 2,647.78 million, while total
income for the quarter rose 7.33% to Rs 2,649.82 million, when compared with
the prior year period.

During the quarter, the company reported earnings of Rs 3.41 a share.


  *Quarterly Results - Standalone (Rs in mn)* *As at* *Dec - 08* *Dec - 07*
*%Change* *Net Sales* 2,647.78 2,299.46 15.15 *Net Profit* 511.17 736.88
(30.63) *Basic EPS* 3.41 NA

During the quarter, the operating margin of the company declined by 830.64
basis points to 55.93% compared with the previous year period. Interest cost
increased 9.64% to Rs 397.41 million while depreciation cost rose 5.06% to
Rs 567.44 million over previous year period.

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