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Sarin Technologies 2Q Revenue +16%
Aug 6, 2012 6:24 AM
By Avi Krawitz
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RAPAPORT... Sarin Technologies reported that its group revenue rose 16 percent year on year to $18.2 million in the second quarter of 2012. The manufacturer of tools used in the diamond manufacturing sector also reported that its profit increased 31 percent to $6.6 million.
The company said it expects diamond industry growth to be driven by demand in the U.S., China, the Middle East and Japan given that challenging conditions persist in India and Europe.
The weakening of the rupee against the dollar, constrained liquidity and limited credit has influenced Indian diamond manufacturers to become more vigilant in managing their working capital and equipment investment, Sarin noted.
Still, sales in India rose 14 percent year on year to $14.1 million during the second quarter, while sales in Africa grew 25 percent to $1.5 million. Sarin’s sales in Europe fell 34 percent to $388,000 while its sales in North America increased 25 percent to $301,000. Combined sales in other locations grew 50 percent to $1.9 million.
Sarin surmised that credit tightening in India and the prevailing weakness in the rough market will impede its business in the short term. The company added that possible restocking by retailers ahead of the December holiday season should alleviate the liquidity issue and strengthen polished prices, however.
During the first half of 2012, Sarin’s revenue grew 36 percent to $37.8 million, while net profit grew 73 percent to $14.4 million as its performance slowed in the second quarter from that of the first.
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Tags:
Avi Krawitz, diamonds, Rapaport, Sarin
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