Amira Nature Foods Ltd reported financial results for its fiscal 2015 third quarter which ended on December 31, 2014. Revenue increased 35% to $192.4 million, compared to $142.5 million for same period in fiscal 2014.
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The revenue increase was primarily due to increased sales volume and product mix in India and internationally. Sales in India increased 30.7% to $86.6 million, while sales outside of India, or international sales, increased 38.9% to $105.8 million. Amira branded and third party branded sales increased 29.2% to $176.4 million and institutional sales increased $10.1 million to $16.0 million.
Cost of material including the change in finished goods increased by $45.3 million or 42.2% to $152.7 million, and as a percentage of revenue increased by 390 basis points to 79.3% from 75.4% in the year ago period.
Cost of material including change in finished goods as a percentage of revenue plus foreign exchange gain/ (loss) (due to hedging of foreign exchange risk) increased by 330 basis points to 79.2% of sales from 75.9% in the prior period. This was largely driven by higher cost of raw material from the procurement season of the fiscal 2014.
Increase in cost of material, including the change of finished goods were offset in part by other line items throughout the P&L. Freight, forwarding and handling expenses decreased by 180 basis points to 2.4% of sales from 4.2% in the prior period, due to more shipments involving free on board.
Employee benefit costs decreased 110 basis points to 2.3% of sales compared to 3.4% of sales in the prior year period. Other expenses decreased 80 basis points to 3.2% of sales from 4.0% of sales in the year ago period. Other gains / losses showed a gain of $1.3 million versus a loss of $0.9 million in the prior year period.
Adjusted EBITDA increased $7.4 million or 36.6% to $27.7 million and Adjusted EBITDA margin increased to 14.4%. Profits after tax increased 82.8% to $14.1 million compared to $7.7 million in the prior year period. Adjusted profit after tax increased by 52.9% to $15.9 million for the three months ended December 31, 2014 compared to $10.4 million in the year ago period.
Adjusted EPS increased 52.9% to $0.44 per share from $0.29 per share in the prior year period. The Company’s effective tax rate was 21.8% for the period compared to 19.1% for the prior year period. ■
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