By Michelle Graff
Moscow--Russian diamond miner Alrosa saw revenue increase more than 40 percent in the first quarter, although net profit fell slightly year-over-year. 

The Moscow-based diamond mining and manufacturing company reported Tuesday that first quarter 2014 revenue increased 43 percent over first quarter 2013 to $1.66 billion, due to increased rough diamond sales and a weakening ruble.

EBITDA grew 1.6 times year-over-year to $772 million while EBITDA margin increased to 46 percent. 

Net profit slid 3 percent to $180.4 million, mainly due to increased exchange rate loss as a result of the reevaluation of the dollar-denominated part of the company’s credit portfolio following the weakening of the ruble. 

Free cash flow was up 2.5 times as compared with the same period last year due to increasing operating profit and sell-down of inventories. 

“Positive market dynamics in Q1 2014 allowed Alrosa to deliver record-high financial results that have enable Alrosa capitalization growth of 20 percent since the SPO on MICEX in 2013,” CEO Fyodor Andreev said. 

RELATED CONTENT: US investors buy up Alrosa IPO shares

Alrosa launched its initial public offering on the Moscow Interbank Currency Exchange, or MICEX, in October 2013. 

It is the world’s largest diamond producer in volume terms and second largest in value terms, behind only De Beers. 

The company is based in Moscow and Mirny, Russia and is owned by the Russian government, the Russian republic of Yakutia, where most of its mines are located, eight municipalities in Yakutia and by various minority investors. 

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