RAPAPORT… Revenue at Mumbai-based diamond and jewelry manufacturer Asian Star fell in the past fiscal year as Covid-19 lockdowns and restrictions hindered sales.
Group revenue — including at subsidiaries — slid 16% to INR 25.62 billion ($353.1 million) for the year ending March 31, the company said earlier this month. Diamond sales plunged 66% to INR 21.44 billion ($295.5 million), while revenue from jewelry dropped 18% to INR 5.34 billion ($73.6 million). Profit for the period rose 1% to INR 640.4 million ($8.8 million) as a 16% drop in expenses compensated for the decline in sales.
Sales collapsed in the first fiscal quarter ending June 30 due to India’s lockdown and reduced polished demand from the US and other major retail markets. Since then, India has steadily reopened, with the company resuming operations in a phased manner from mid-May onward.
With the situation improving, revenue grew 54% year on year to INR 10.91 billion ($150.3 million) in the fourth fiscal quarter. Profit soared to INR 381.9 million ($5.3 million) from INR 62.9 million ($866,562) a year earlier.
Image: Asian Star-manufactured jewelry. (Asian Star)
Asian Star Full-Year Revenue Falls
The Bottom Line
- Asian Star's full-year revenue dropped 16% to INR 25.62 billion ($353.1 million) due to Covid-19 lockdowns and market restrictions.
- Diamond sales fell sharply by 66% to INR 21.44 billion ($295.5 million), while jewelry revenue decreased 18% to INR 5.34 billion ($73.6 million).
- The company posted a 1% profit increase to INR 640.4 million ($8.8 million), aided by a 16% reduction in expenses and a 54% revenue rise in the fourth quarter.
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