India's Asian Star Sees Sales Plunge

RAPAPORT... Sales and profit plummeted at Indian diamond manufacturer Asian Star in the first fiscal quarter as the coronavirus froze the company's activities.Revenue slumped 80% year on year to INR 1.64 billion ($22.2 million) for the three months ending June 30, the Mumbai-based company said earlier this month. Net profit plunged 98% to INR 4.3 million ($58,356).The figures, which include the company's subsidiaries, reflect a tough period for the Indian diamond industry as the pandemic forced factories to shut and reduced global polished demand. The country has steadily reopened, but infections remain high."With the Covid-19-induced nationwide lockdown imposed since the last week of March, the company's operations were severely disrupted during the major part of the quarter, resulting in significant loss of revenue and [having] an impact on profitability," Asian Star explained. "With the introduction of relaxations by the government, operations resumed from mid-May at all the locations in a phased manner."Diamond revenue fell 82% to INR 1.36 billion ($18.4 million) for the period, while sales of finished jewelry dropped 81% to $275.5 million ($3.7 million).The diamond division generated a loss of INR 26 million ($351,895) before interest and tax, compared with a profit of INR 290 million ($3.9 million) a year ago. Losses from jewelry operations stood at INR 22.7 million ($307,216), versus a profit of INR 56 million ($758,658) for the same period of 2019.Image: Polished diamonds. (Shutterstock)