Essar Shipping has rallied 9% to Rs 34 on reporting 43% year-on-year (yoy) increase in net profit at Rs 48.6 crore for the quarter ended December 2011, as against Rs 33.9 crore in the same quarter last year. The revenue increased by 11% to Rs 729 crore during Q3FY12, as against Rs 659 crore in the year ago period.

EBITDA (earnings before interest, tax and depreciation) of the company increased over 39% to Rs 242 crore as against Rs 174 crore in Q3FY11, Ruia-promoted Essar Shipping said in a filing to the stock exchanges.

"Despite tough market conditions such strong performance is primarily because of the company's strategy to enter into long-term charter of the vessels which provides a natural hedge against the cyclical nature of the industry and ensures long-term visibility of revenues and profitability," the company's Managing Director A R Ramakrishnan said in a press release.

A combined around 60,000 shares have changed hands on the counter in opening deals on the NSE and BSE.