Asian Star Sees Stable Sales Amid Challenging Diamond Market
Despite a tough market for diamonds, Asian Star, a prominent Indian diamond manufacturer, managed relatively steady revenues in its third fiscal quarter, bolstered by robust sales of gold jewelry.
For the quarter ending December 31, the company's consolidated revenue, including subsidiaries in the U.S., Dubai, and Hong Kong, declined slightly by 1% year-on-year to INR 6.92 billion ($79.6 million). However, compared to the previous quarter, revenue increased by 4.2%. The company's net profit saw a more significant decrease, falling 39% to INR 111.5 million ($1.3 million).
Asian Star's material costs dropped 18%, likely reflecting a strategic shift toward fewer diamond products in response to weak demand. Major markets such as China, Hong Kong, and the United States have shown reduced interest in diamonds, prompting Asian Star to diversify.
Indeed, revenue from Asian Star’s diamond segment experienced a 10% year-on-year decline, totaling INR 5.13 billion ($59 million). In contrast, jewelry sales surged 32% to INR 2.28 billion ($26.3 million), driven by increased consumer demand for gold jewelry, particularly in China and Hong Kong.