Sarine Technologies Ltd has announced its financial results for the six months ended 30 June 2021. During the period under review, a strong pick-up in manufacturing activities in India, which started towards the end of Q3 2020 continued into 2021. This recovery in rough diamond manufacturing was driven by strong demand for diamond jewellery, following the reopening of retail activities in key global markets in late summer 2020 and carrying over to a strong end of year holiday season in the US market and a buoyant Chinese New Year season in early 2021 throughout most of the Asia Pacific market.
The challenges and uncertainties of imminent lockdowns caused by the resurgence of the Covid-19 virus in India, kept most manufacturers operating throughout May and June, foregoing their summer vacations to meet demand for polished diamonds. With overall positive business conditions in H1 2021, the Group recorded revenue of $36.0 mn, an increase of 61% over the $22.4 mn realised in the corresponding period last year, which was negatively affected by global lockdowns.
Profitability in H1 2021 benefited from significantly higher revenue and gross profit margin, which expanded due to economies of scale with increased overall sales and a favourable product mix.
With the Group returning to mostly normal operations, following the cutbacks initiated in 2020 on the backdrop of the pandemic, Group operating expenses rose 10% to $13.1 mn. Notwithstanding this return to a higher level of expenditures, the robust revenue growth provided operating leverage for the Group's net profit to hit $12.6 mn in H1 2021, up from only $1.2 mn in H1 2020.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
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