The Group's revenues and operating performance showed continued improvement in Q1 2016 following the improvement already manifested late in 2015, essentially after the Indian Diwali holiday in November. The Group reported in Q1 2016 revenues of US$ 15.5 million; profit from operations of US$ 3.7 million, and net Profit of US$ 3.0 million, as compared to revenues in Q1 2015 of US$ 12.2 million, profit from operations of US$ 0.8 million and net profit of US$ 0.9 million, and as compared to revenues in Q4 2015 of US$ 12.4 million, profit from operations of US$ 2.0 million and net profit of US$ 1.5 million.
The continued improvement in our business on both year-over-year and sequential bases, as elaborated on in section 10, was primarily due to more positive sentiment in the midstream ofthe diamond industry driven by: 1: renewed manufacturer profitability and margins following increased sales and prices of polished diamond jewellery (both up in U.S, 5%- y-o-y) and lower rough diamond prices (down 20% - 25% y-o-y).
2: increased or stable consumer demand from most markets except Hong Kong; 3: the downstream need to replenish depleted inventories of polished diamonds; and 4: improved midstream liquidity following the 2015 destocking. With deliveries in Q1 2016 of18 Galaxy'?" family systems to customers, comprising ten of the new Meteor" small stone machines, four Solaris" machines and four Galaxyl'" and Galaxyf" Ultra systems, the Group had an installed base of233 GalaxyTM family systems as of March 31,2016.
Overall recurring revenues for Q1 2016 (including Galaxyl' related, Quazer services, annual maintenance contracts, etc.) represented over 40% of our overall revenue. Our recurring revenues saw an approximate 30% sequential increase over Q4, 2015.