Asian Star, a prominent player in the diamond industry, experienced a notable decline in sales attributed to softened diamond demand, as reported last week for its third fiscal quarter ending on December 31.
Consolidated revenue, encompassing subsidiaries in the US, Dubai, and Hong Kong, fell by 13% year-on-year to INR 6.98 billion ($84.1 million). Sales registered a substantial 24% decrease compared to the previous quarter. Despite this decline, net profit surged by an impressive 37% to INR 182.5 million ($2.2 million).
The downturn in sales reflects subdued diamond demand in key markets such as the US and China, discouraging jewellers from restocking their inventories. In China, jewellery retailers Chow Tai Fook and Luk Fook reported that gold jewellery outperformed diamond-set pieces during the period under review.
Revenue from Asian Star’s diamond segment experienced a significant 17% decline, amounting to INR 5.7 billion ($68.7 million). Conversely, sales of gold jewellery saw a notable uptick, rising by 9% to INR 1.74 billion ($20.9 million).
The company’s performance underscores the prevailing challenges facing the diamond industry amidst shifting consumer preferences and economic uncertainties in key markets. As Asian Star navigates these challenges, its ability to adapt to evolving market dynamics will be critical to sustaining growth and profitability in the future.
