RapNet


Rapaport News

 

Manufacturing

 
Rapaport 宣傳
Martin Rapaport’s Webinar on Estate Jewelry
October 30 2019

高級搜尋
最新文章
視訊
功能
新聞
挖掘
原石市場
拋光市場
製造
零售

Rough Slowdown Weighs on Asian Star

Indian manufacturer’s revenue and profit drop amid slump in trading business.
Nov 18, 2019 9:46 AM   By Joshua Freedman
Print 列印 Facebook Facebook Twitter Twitter 共用 Share


RAPAPORT... 
Sales and profit slumped at Indian diamond manufacturer Asian Star in the second fiscal quarter as weak rough demand prompted it to reduce its trading activities.

The Mumbai-based company supplements its core cutting business by reselling rough through its subsidiaries, Pranav Kapadia, Asian Star’s chief manager for accounts and tax, explained to Rapaport News Monday. Revenue from that segment declined during the three months ending September 30 due to pressure on the manufacturing sector, he added.

As a result, group revenue fell 27% year on year to INR 7.98 billion ($111.2 million) in the three-month period, while net profit dropped 66% to INR 130.8 million ($1.8 million), the company reported in a statement last week. Excluding subsidiaries, revenue slipped 5% to INR 6.67 billion ($92.8 million), while profit declined 16% to $1.3 million (INR 94.7 million), reflecting a more moderate slowdown in its diamond- and jewelry-manufacturing operation.

“Demand has been slow because of a lot of inventory in the pipeline,” Kapadia said. “Manufacturing was low, so the rough-trading opportunities were very minimal. The opportunities that were available were not that profitable. If you look at our manufacturing business, which is our core business, that has done [relatively] well.”

Results are likely to improve in the coming months as inventory levels have stabilized, Kapadia added. The company, a sightholder focusing on smaller goods, has continued to buy from De Beers and other miners at normal rates, instead reducing its supply from the open market, he continued. Manufacturing margins have been stable versus a year ago, as the company chose to walk away from deals rather than compromise on profitability, he reported.

Image: Rough diamonds. (Shutterstock)
Tags: Asian Star, cutting, India, Joshua Freedman, Manufacturing, mumbai, Polishing, Rapaport News, rough, Rough Diamonds, rough trading
Similar Articles
Synova machineSynova Launches Automated Cutter
Sep 26, 2019
A technology provider part-owned by De Beer...
Manufacturer LDC Acquires Metal-Casting Company
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First



電洽: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    私隱政策  
  
twitter twitter
關於 Rapaport
廣告業務