Weak Diamond Market Hits Asian Star Revenue

Sales at Indian diamond manufacturer Asian Star slid in the third fiscal quarter, amid a downturn in small diamonds.

Revenue on a consolidated basis — which includes subsidiaries in the US, Dubai and Hong Kong — dropped 4% year on year to INR 6.68 billion ($73.77 million) for the three months that ended December 31, the company reported Wednesday. Net profit slipped 16% to INR 94.1 million ($1 million)

The manufacturer wants to pivot into finished jewelry, to offset weakness in its loose small-diamonds business. The performance in that segment has fallen as the US majors move into lab-grown.

Revenue from the company’s diamond segment was down 17% year on year to INR 3.06 billion ($33.7 million), while sales of jewelry dipped 1% to INR 2.26 billion ($24.9 million).

“The trade deal with the US will have a positive impact on demand and ease pressure on the margins,” said Asian Star CEO Vipul Shah. “The company is focusing on growing its jewelry business, which has tremendous potential.”

Image: Jewelry manufacturing. (Asian Star)