MAINBOARD-LISTED Sarine Technologies said on Thursday the latest outbreak of Covid-19 in India has not yet had any material effect on its business.

In an exchange filing, the company, which makes equipment for diamond producers and sellers, said the only marginal impact on its business has been the "very minor absence" of around 5 per cent of its workers who are either ill or in quarantine, having been exposed to sick or possibly sick persons.

It said the absence of these employees has not impaired its global operations, beyond the employees' local responsibilities, which are to support local Indian customers.

Sarine's update comes as India faces a severe outbreak of Covid-19, with daily cases exceeding 300,000 for the past week. Major cities, including the capital Delhi, as well as Bengaluru, have entered into fresh lockdowns this month.

Sarine said: "Though Mumbai, the centre of the polished diamond trade in India, is currently under lockdown, the diamond trade and bourse have been exempted."

For its diamond cutting and polishing operations in Surat, Sarine noted there has not yet been any new official directives relating to the diamond industry, beyond the night time curfew, which has been in force before the current outbreak.

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"The curfew has had little to no effect, as the manufacturers' night shifts typically start before the curfew and end afterwards," it said.

It does not foresee any significant impact on its business going into May, as there is a seasonal shutdown in India for the summer vacation, which typically lasts two to three weeks.

However, the company noted that if the current health situation is not alleviated, the May summer break could be extended for the entire month, or longer.

Sarine said it is "strictly adhering to all health directives" issued by authorities and curtailing all travel by staff to or from India.

It noted that the current situation is different from last year, when the entire industry came to a virtual standstill due to global lockdowns and the cessation of retail activities essentially worldwide.

Sarine added that the current crisis - from the diamond industry perspective - is limited to India, as the appetite for diamond jewellery "remains strong" in key consumer markets in the US and the Asia-Pacific region, which make up around two-thirds of total global demand.

In the financial year ended December 2020, nearly 70 per cent of Sarine's US$41 million revenue came from India. Sarine had said in its financial statements in February that previous lockdowns and other government directives in India restricted manufacturing activity completely or partially for over five months of 2020.

Sarine shares closed unchanged on Thursday at S$0.62, before the announcement.