Sales at Indian diamond manufacturer Asian Star slumped in the first fiscal quarter as demand for diamonds slowed. 

Revenue on a consolidated basis — which includes subsidiaries in the US, Dubai and Hong Kong — fell 18% year on year to INR 7.67 billion ($91.5 million) for the three months that ended June 30, the company said last week. The figure is also 23% below last quarter’s total. Net profit dropped 26% year on year to INR 174.9 million ($2.1 million). 

Sales from the company’s division that sells loose diamonds declined 22% year on year to INR 6.3 billion ($75.1 million) for the period, and 27% from the previous three months. Meanwhile, revenue from jewelry rose 10% year on year to INR 1.69 billion ($20.2 million).  

The manufacturing of diamonds is by far the company’s largest division. Recently, consumers in China, one of Asian Star’s largest markets, have shown more interest in purchasing gold jewelry than diamonds, while the US market has been weak due to oversupply and the generally quiet summer period.

Image: Loose diamonds (Shutterstock)