Revenue at Indian diamond manufacturer Asian Star dipped slightly in the third fiscal quarter as a decline in diamond sales outweighed strong purchases of gold jewelry.
Revenue on a consolidated basis — which includes subsidiaries in the US, Dubai and Hong Kong — fell 1% year on year to INR 6.92 billion ($79.6 million) for the three months that ended December 31, the company reported last week. However, sales increased 4.2% compared to the previous quarter. Net profit dropped 39% to INR 111.5 million ($1.3 million).
The cost of materials declined 18% year on year, likely as the company reduced the proportion of diamond products it offered. In China and Hong Kong, one of Asian Star’s primary markets, demand for diamonds has decreased considerably, while gold jewelry has become more popular. The US, another major market, has also experienced a slowdown in appetite for diamonds.
Revenue from the company’s diamond segment dropped 10% year on year to INR 5.13 billion ($59 million), while sales of jewelry increased 32% to INR 2.28 billion ($26.3 million).
Image: A diamond bracelet (Asian Star)
