Indian diamond manufacturer Asian Star saw its sales decline in the first fiscal quarter, as demand for the product weakened.
Revenue on a consolidated basis — which includes subsidiaries in the US, Dubai and Hong Kong — fell 5% year on year to INR 7.29 billion ($83.3 million) for the three months that ended June 30, the company said Tuesday. The figure is also 15% lower than last quarter. However, net profit rose 11% to INR 193.4 million ($2.2 million).
Sales from the company’s loose-diamond segment declined 13% to INR 5.47 billion ($62.9 million) for the period and slipped 18% from the previous three months. Meanwhile, revenue from jewelry increased 19% to INR 2.01 billion ($23 million).
The majority of Asian Star’s business comprises diamond manufacturing, which means when the industry is weathering a slowdown, it hurts revenue. China and the US, Asian Star’s largest markets, are both experiencing difficulties. For more than a year, Chinese consumers have been favoring gold jewelry over diamonds, while concerns over US tariffs have hit sales to suppliers in America. The imbalance of supply and demand in certain categories has also impacted the company’s results.
Image: Jewelry manufacturing. (Asian Star)