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Sarine Technologies
02-03-2019, 12:53 PM. (This post was last modified: 02-03-2019, 12:53 PM by karlmarx.)
Post: #221
RE: Sarine Technologies
In November again, the company slashed their salaries by another 20 per cent cut. When Patel got his salary on December 10, it was just Rs 54,000 — nearly half of what he got five months ago. The factory owners clearly told the employees that the business was not doing well as profit margins had reduced and Christmas sales were down.

“In the last six months or so, our salaries have been cut by 55 per cent and we cannot protest as we fear that our owner will sack us. We have come to know that the owner has decided to lay off 20 per cent of the staff. At this juncture, diamond polishers will not get jobs in other factories, and even if they get one, they will have to work for less salaries. The average salary of a diamond polisher in our factory is between Rs 30,000 to Rs 35,000, and even that has now gone down,” says Patel.


Are Sarine's problem short-term or more enduring?

Perhaps Q4's poor results are one-off? Perhaps the next few quarters will see a resumption in demand for polished diamonds?

Perhaps the cut in dividend is a sign of what management is expecting?

The future is hard to tell...

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21-04-2019, 10:40 AM. (This post was last modified: 21-04-2019, 10:41 AM by karlmarx.)
Post: #222
RE: Sarine Technologies
In its latest profit guidance, Sarine mentioned that it expects to report a loss when it reports its next quarterly. This probably should not surprise most followers, given the poor rough diamond sales during the period.

What is surprising is that, from its latest Annual Report, Sarine continues to be dogged by DBC's infringement of its intellectual property, which began in 2017. In spite of the actions taken by Sarine to draw attention to industry practitioners of the foul play, and its effort to prosecute DBC through (lengthy and costly) legal means, it seems that Sarine has thrown in the towel when it mentioned that it has lowered it prices to remain competitive with DBC.

To further drive adoption of our industry-leading solutions, we have successfully launched very aggressive sales promotions of the Meteor and Meteorite systems, for small and very small rough stones under 0.9 and 0.4 carats, respectively, to essentially offer our superior technology at pricing comparative to that offered by DBC.

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