Asian Star Co. Ltd. reported that group net sales fell 2 percent year on year to $86.2 million (INR 4.31 billion) during its second fiscal-quarter that ended on September 30, 2011 due to weak sales of cut and polished diamond. Net profits, however, rose 33 percent to $1.8 million (INR 89 million) helped by lower taxes.
Sales at the company’s cut and polished diamond segment decreased 11 percent to $75.2 million (INR 3.76 billion). The company, which retails its jewelry under ”Shagun Jewels,” reported that jewelry business grew 57 percent to $14.8 million (INR 739 million). Sales at its wind energy generation segment rose 6 percent during the quarter.
The company, whose business comprises of diamond manufacturing, jewelry manufacturing and retailing, posted an operating profit of $3.1 million (INR 154.5 million), up 9 percent from a year earlier. Tax expenses decreased 35 percent to $491,488 (INR 24.6 million) during the quarter, while total expenditures fell 2 percent to $83.1 million (INR 4.16 billion).
Asian Star, a Diamond Trading Company sightholder, has manufacturing centers at Surat, Mumbai and Hosur in India for diamond processing and jewelry manufacturing.