Sarine Technologies posts US$1.4m net loss for Q1

DIAMOND technologies firm Sarine Technologies on Sunday reported a net loss of US$1.4 million for the first quarter ended March 31, compared to a net profit of US$3.1 million a year ago.

The mainboard-listed company attributed the performance to reduced manufacturing activities in Q1 2019, as midstream customers experienced working capital issues due to Indian banks tightening credit policies and calling for some of the already extended credit to be returned by the Indian fiscal year's end of March 31.

The advent of lab-grown diamonds in the market and the ongoing US-China trade dispute also drove adverse sentiments in the industry's midstream.

Group revenue declined 34 per cent to US$10.9 million due to lower capital equipment sales and reduced recurring income from inclusion mapping services.

Loss per share was 0.04 US cents, compared with earnings per share of 0.88 US cents in the first quarter of the previous year. No dividend was declared for the period under review.

Sarine Tech shares closed at S$0.345 on Friday, down 0.5 Singapore cent or 1.43 per cent.