Sales at Indian diamond manufacturer Asian Star plummeted in the first fiscal quarter, reflecting a slowdown in global demand for diamonds.
The company’s consolidated revenue, which includes operations in the US, Dubai, and Hong Kong, dropped 18% year on year to INR 7.67 billion ($91.5 million) for the three months ending June 30, the company announced last week. This figure is also down 23% from the previous quarter. Net profit fell 26% year on year to INR 174.9 million ($2.1 million).
The division that deals in loose diamonds saw a significant 22% year-on-year decline in sales, amounting to INR 6.3 billion ($75.1 million) for the period, and a 27% drop compared to the previous quarter. In contrast, the jewelry segment reported a 10% year-on-year rise in revenue, reaching INR 1.69 billion ($20.2 million).
Diamond manufacturing remains the company’s core business, but recent trends have shifted. Consumers in China, one of Asian Star’s major markets, are now favoring gold jewelry over diamonds. Meanwhile, the US market has been sluggish, impacted by an oversupply and the typically slow summer season.
