Sarin Technologies, which manufactures tools used in the diamond cutting sector, reported that revenues grew 9 percent year on year to $15.6 million in the second quarter that ended June 30, 2011. Group profits increased 8 percent to $5 million after cost of sales grew 10 percent to $5.3 million and expenses rose 26 percent to $4.5 million.

The group cited optimistic business sentiment and improved market conditions during the period which contributed to the growth.

Sarin's revenues in India, where a majority of diamond cutting is carried out, rose 7 percent to $12.4 million, while in Africa revenues jumped 73 percent to $1.2 million. Revenues in Europe grew 13 percent to $588,000 while in North America they fell 15 percent to $241,000. Revenues from other markets declined 2 percent to $1.2 million.

Revenues during the first half of the year were flat at $27.9 million and net profits fell 8 percent to $8.3 million.

Sarin warned that negative economic data from the U.S. and Europe, and the Chinese government’s moves to lower inflation and slow economic expansion may impact trends in the diamond industry. However, the company noted that diamond jewelry demand in China and India is expected to grow by more than 20 percent this year, which will continue to drive global diamond demand and rough and polished prices.

The company added that it expects additional rough diamond supply from Zimbabwe’s Marange diamond fields to alleviate the pressure on rough diamond prices and drive further expansion of China and India’s diamond manufacturing sectors, creating additional opportunities fort Sarin’s products in these markets. The company noted that it has started selling its machines in Zimbabwe as the country has begun developing an indigenous diamond cutting industry.