Mumbai-based diamond and jewelry manufacturer Asian Star’s sales fell in the second fiscal quarter, as the market for smaller diamonds continued to struggle.
Group revenue on a consolidated basis – including at subsidiaries – dipped 20% year on year to INR 6.14 billion ($65.4 million) for the three months that ended September 30, the company reported last week. Net profit grew 27% to INR 154.5 billion ($1.6 million).
Revenue for the company’s diamond segment was down 21% year on year to INR 4.36 billion ($46.4 million), while sales of jewelry slipped 15% to INR 1.99 billion ($21.2 million).
Asian Star’s business largely focuses on smaller loose diamonds, a segment that has been experiencing prolonged weakness amid sluggish demand, contributing to the decline. Last year, the company indicated that it planned to invest more in finished jewelry in an effort to reduce its reliance on loose diamonds and expand its business. However, demand for finished jewelry has also softened in the second quarter.
Sales for the first six months of the fiscal year declined 15% to INR 12.62 billion ($134.3 million). Meanwhile, the diamond category dropped 22% to INR 8.62 billion ($91.7 million) and jewelry was stable, edging down 0.3% to INR 4.34 billion ($46.2 million).
Image: Asian Star jewelry. (GJEPC)
