Indian diamond manufacturer Asian Star experienced a significant drop in sales during the first fiscal quarter, as global demand for diamonds slowed. The company reported an 18% year-on-year decline in consolidated revenue, which includes its subsidiaries in the US, Dubai, and Hong Kong. For the quarter ending June 30, revenue stood at INR 7.67 billion ($91.5 million), marking a 23% decrease from the previous quarter’s total.
Net profit also took a hit, falling 26% year-on-year to INR 174.9 million ($2.1 million).
The company’s loose diamond division, its largest revenue generator, saw a 22% year-on-year decline in sales, bringing in INR 6.3 billion ($75.1 million). This represents a 27% drop from the previous quarter. In contrast, the jewelry division reported a 10% year-on-year increase in revenue, reaching INR 1.69 billion ($20.2 million).
The downturn in the diamond market, particularly in key regions like China and the US, has significantly impacted Asian Star’s performance. Chinese consumers are increasingly favoring gold jewelry over diamonds, while the US market has been sluggish due to oversupply and the typically slow summer season.