Sales and earnings slumped at Indian diamond manufacturer Asian Star in the final three months of last year as retail demand stalled in the US and China.

Revenue on a consolidated basis — which includes subsidiaries in the US, Dubai and Hong Kong — fell 30% year on year to INR 8.07 billion ($98.4 million) in the company’s fiscal second quarter, which ended December 31, management reported Monday. Net profit dropped 36% to INR 133 million ($1.6 million).

Those figures reflected inflation and higher interest rates in the American market, which reduced consumer demand and discouraged jewelers from restocking, explained Asian Star managing director and CEO Vipul Shah. China’s downturn due to a Covid-19 outbreak also dented sales, he said. In addition, the company’s trading activity in Dubai slowed during the quarter, partly because of difficulties accessing rough from Russia, the executive noted.

However, the company performed well relative to the market, as its focus is on small diamonds, one of the sector’s stronger categories in recent months, Shah added.

Image: Diamonds and a loupe. (Shutterstock)