Sarin Records Record Revenues and Profits in Q1

Israeli firm Sarin Technologies posted record quarterly revenues for the first quarter of $20.2 million and a record profit of $ 8.1 million.
 
In the same period last year, the figures were $19.7 million and $7.8 million, respectively.
 
The rise was due to a better overall business sentiment and increased Galaxy™-related revenues.
 
The firm said a number of industry trends would continue to play a role in the global diamond business.
 
Figures from the US show the largest rise in consumer spending in two years helped the economy to speed up in Q1. “Indeed, better than expected orders from U.S. diamond jewellery retailers has significantly contributed to the improved sentiment in the diamond industry.”
 
Furthermore, economic growth 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 commented that bank financing of the diamond industry has “become more circumspect.