Indian jewelry manufacturer Goldiam International has increased its lab-grown diamond inventory as it adapts to the inflationary US market following a sales drop in the first fiscal half.
The growing cost of goods and higher interest rates led to a decrease in consumer spending on discretionary items such as jewelry, the company said last week. Goldiam supplies jewelry to retailers and wholesalers in the US and other global markets.
“The company was well prepared for this situation and adjusted its product offerings accordingly,” said Goldiam executive chairman Rashesh Bhansali. “Our investment in lab-grown diamond facilities continues to reap fundamental benefits. Our sell-down of inventory for natural diamonds has also been beneficial in protecting the overall profitability for the company, despite such a volatile economic scenario. We are confident about the lab-grown diamonds business going ahead.”
Goldiam intends to increase its lab-grown diamond capacity by 40% during the year, Bhansali added.
Revenue for the six months ending September 30 fell 29% year on year to INR 2.34 billion ($28.8 million), while earnings before interest, taxes, depreciation and amortization (EBITDA) slipped 3% to INR 622 million ($7.7 million).
Image: Lab-grown diamonds. (Shutterstock)