Sarine’s Q1 Net Profit Up 27% To $3.1 Mn
Sarine Group recorded higher revenues of $16.7
million in Q1 2018. Year-on-year improvement was
marginal, but is still noteworthy as recurring revenues
continued to climb even as the quantities of rough stones
entering the pipeline declined by 10%, compared to the
corresponding period in 2017. The significant growth in
revenue on a sequential quarterly basis, driven by higher
equipment sales and increased recurring income, reflects
renewed robust activities in India’s midstream diamond
manufacturing sector.
During the quarter, the Group delivered 12 Galaxy®
family systems to customers, comprising five of the
new Meteorite™ model, five of the Meteor™ model, one
Galaxy® and one Galaxy® XL. Notably, all but the Galaxy®
XL were delivered to customers in India, indicative of the
Group’s growing containment of the illicit competition’s
activities. With the installed base of Galaxy® family
systems expanded to 357 units as of March 31st, 2018,
overall recurrent income represented about 45% of Group
revenue. Polished diamond retail-related revenue segment
accounted for 2% of revenue in Q1 2018.
Buoyed by higher sales, gross profit rose to US$11.4
million and gross profit margin improved to 68%. With
higher revenue and well-managed operating expenses, net
profit for the period rose 27% to $ 3.1 million. The Group
expects to continue to accelerate the expansion of sales
programmes utilising Sarine Profile™ with a goal to double
the number of stones scanned in 2017 this year. Following
its active marketing efforts, the Group is acquiring
numerous new customers in the Asia Pacific (APAC) region
as well as initiating new and expanded programs with
existing customers.
Following the opening of the Sarine Technology Lab on
February 18th, 2018 to provide the first-ever technology-
enabled artificial-intelligence-based 4Cs diamond reports,
K-Uno, a key high-end Japanese retailer, announced in
mid-April the adoption of the Group’s new reports. This
unique groundbreaking solution provided by the Group has
been met with enthusiastic market response. Additional
key retailers in the APAC market are planning on launching
programmes adopting Sarine’s reports, as soon as the
necessary logistics infrastructure is put in place. Sarine Opens Second Tech Lab In Mumbai
Sarine Technologies Ltd, the worldwide leader in the
development, manufacture and sale of precision technology
products for the evaluation, planning, processing, finishing,
grading and trading of diamonds and gems, announced
on May 30th, 2018, that it is opening its second Sarine
Technology Laboratory in Mumbai, India, as scheduled,
which will offer services to the key Indian polishing centre,
commencing immediately.
The Sarine Technology Laboratory offers reports on the
broadest range of a polished diamond’s parameters available
in the market today, including AI-based automated 4Cs
grading, diamond authentication, treatment verification, light
performance, the Sarine Diamond Journey rough to polish
documentation, advanced interactive diamond imaging of
various magnifications and perspectives and more.
David Block, CEO of the Sarine Group, said, “The
Mumbai lab’s opening is of major importance, as it will
enable us to provide a logistically efficient solution for
our high-volume retail customers, by certifying their
diamonds immediately after they are polished. This will
allow the majority of retailers that buy diamonds directly
from Indian suppliers to benefit from our groundbreaking
digital reports that combine AI-based grading objectivity
and consistency with the most engaging consumer
experience available. The necessity of enhancing the
consumers’ shopping experience and raising their
confidence in the quality of the offered diamonds is key
in today’s evolving retail environment, and we are proud
to be at the forefront of this developing practice in the
diamond industry.” 38 SOLITAIRE INTERNATIONAL JULY 2018