The Sarine Light machine

(IDEX Online News) – Sarin Technologies reported record quarterly revenues for the first quarter of $20.2 million and record net profit of $ 8.1 million.

 

The figures compare with $19.7 million and S$ 7.8 million, respectively for the same period last year.

 

The improvement was due to an improved overall business sentiment and increased Galaxy™-related revenues.

 

Looking ahead, the company said a number of industry trends would to continue influence the global diamond business.

 

Data from the US indicate the biggest gain in consumer spending in two years helped the economy to accelerate in the first quarter. “Indeed, better than expected orders from U.S. diamond jewellery retailers has significantly contributed to the improved sentiment in the diamond industry.”

 

In addition, economic expansion in China “is continuing at a robust pace, though ‘only’ at 7.7 percent, slightly under the 8 percent previously expected. India's economic growth remains somewhat sluggish and less than that of China's at a projected 6.4 percent, with unresolved government policy issues still an impediment.

 

“Japan has, as expected, initiated varied economic stimulus measures that include drastic monetary-easing steps and fiscal expenditures, which are expected to contribute to domestic economic recovery, as well as help growth in developing nations, as noted by the President of the World Bank.

 

“The improvement in overall industry sentiment has stabilized polished diamond prices on the heels of the drop in rough diamond prices in late 2012. This has had a positive effect particularly on the manufacturing sector, as reported earlier. If the current conditions prevail and rough and polished diamond prices continue to trend in tandem, this should continue to contribute to the positive sentiment in the industry.

 

“However, there are early indications of renewed speculative buying of rough diamonds on the belief a shortage may arise after the reduced sales of rough stones the past nine months. Thus, selected sellers have modestly increased prices to take advantage of the rising premiums some manufacturers have been willing to pay. As always, these trends need to be closely monitored, as they can impact the industry sentiment, and hence our performance.

 

Sarin also noted that bank financing of the diamond industry has “become more circumspect.

 

“We believe this caution on the part of the banks, and the more limited availability of working capital, has become the norm. We have witnessed some hardship on the part of smaller industry players striving to attain financing. Notwithstanding this, we continue to see that investment in our technology on the part of the more established manufacturers has not only not softened, but has actually accelerated…”