Sales at Indian diamond manufacturer Asian Star dropped in the second fiscal quarter as demand for diamonds slowed.
Revenue on a consolidated basis — which includes subsidiaries in the US, Dubai and Hong Kong — fell 28% year on year to INR 6.64 billion ($78.9 million) for the three months that ended September 30, the company said last week. The figure is also 13% below last quarter’s total. Net profit increased 10% year on year to INR 189.9 million ($2.3 million).
Sales from the company’s division that sells loose diamonds declined 39% year on year to INR 5.09 billion ($60.5 million) for the period and 19% from the previous three months. Meanwhile, revenue from jewelry rose 46% year on year to INR 1.91 billion ($22.7 million).
The manufacturing of diamonds is by far the company’s largest division. Recently, consumers in China, one of Asian Star’s largest markets, have shown more interest in purchasing gold jewelry than diamonds, shying away from buying luxury goods. Additionally, the US market has been weak due to oversupply and the generally quiet summer period. Demand is likely to pick up in the coming months as retailers stock up for the holiday season.
Image: Asian Star jewelry. (Gem & Jewellery Export Promotion Council)
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