Sarine Reports Record Quarterly Revenues, Profits In Q3

(IDEX Online) – Sarine Technologies Ltd, a worldwide leader in the development, manufacturing, marketing and sale of precision technology products for the evaluation, planning, processing, measurement and grading of diamonds and gems, reported record quarterly revenues for the third quarter of $20.4 million.

In the year-earlier quarter, it posted revenues of $17.3 million.

Net profit also set a new record for the third quarter at $5.7 million compared with $3.1 million last year.

For the first nine months of this year, revenues were $69.5 million and record net profit of $23.3 million, compared with $59.7 million and $19.4 million, respectively, last year.

Profit from operations in the third quarter was a record $6.8 million from $6.1 million last year. For the first nine months of 2014 profit from operations was $27.8 million from $24.7 million

The firm said the improved operating performance in the third quarter on last year "stemmed primarily from increased Galaxy family related revenues along with increased sales of our other rough diamond planning and processing products".

Sarine said that on a sequential quarterly basis the decrease in revenues, especially in India, was due to several factors. These include the increasing impact on some of its clients of the credit lines available to them, a typical slowdown late in the third quarter ahead of a relatively early Diwali which fell in October this year rather than the usual November, and the lower amount of rough in the manufacturing pipeline with fewer Sights in third quarters.

The company said it expects global economic conditions and the exchange rate of the rupee versus the US dollar to remain stable.

"The shortage of available credit in India is becoming more significant as several banks in India and the Far East have either curtailed or reduced significantly their extension of credit to the diamond industry." Lengthy certification of diamonds was also impacting clients who were having to hold on to stock for longer.

The firm said that polished prices have remained stable overall after rising in the first quarter of this year, with some sizes seeing falling prices in the third quarter. Meanwhile, rough diamond prices have risen moderately, with an "unexpected increase" in the October Sight.