Sarine's 3Q net profit recovered from last year's slump

It stood at $6m compared to a $2m loss during 3Q2015.

Sarine recorded 82% revenue growth to US$ 17.3m (S$24.5m) on the back of increased manufacturing equipment sales and higher recurring revenue in Q3 2016.

The growth was broad-based across most geographical segments as business conditions continue to improve with positive renewed consumer demand for polished diamonds in key markets, robust supply of rough diamonds at economically viable prices and the absence of inventory overhang.

The growth in revenue boosted gross profit by 97% to US$ 11.8m (S$16.7m) and gross profit margin improved to 69%.

Consequently, the Group reversed the net loss of US$ 1.4m (S$m) in Q3 2015 and recorded a net profit of US$ 4m (S$6m) in Q3 2016.

During the quarter, Sarine deployed a record 22 Galaxy family systems, comprising 12 new Meteor small stone machines, 7 Solaris machines, 2 Galaxy Ultra machines and 1 Galaxy system.

One of the Galaxy Ultra systems was deployed to the Group’s service centre in India to meet strong demand for these high-end services. As of 30 September 2016, the Group has an installed base of 275 Galaxy family systems.

For the nine months ended 30 September 2016, Group revenue rose 49% to US$53.6m (S$75.9m), of which 40% was recurrent in nature. Net profit for the period surged significantly by 515% to US$ 13m (S$18.4m), compared to US$ 2.1m (S$3m) in the previous corresponding period.