Investor Center MD's Message
MD's Message
VIPUL SHAH

CEO & Managing Director

2016 has indeed been an eventful year – one that will not be forgotten in a hurry. Two events that dominated global headlines were the surprise election of the republican candidate as the President of the USA and the unexpected result of the referendum in the UK to opt out of the European Union, popularly known as BREXIT. Both these events are bound to impact not only global geopolitics, but also economy in the years ahead.

The Indian economy continued to surge ahead with another year of over 7 percent growth in GDP. The demonetization in the month of November 2016 affected growth across industries and sectors, but is expected to be a bold and decisive step in the right direction. GST is another such step that will create a unified market and level the playing field in days to come.

While there was a decline in consumer demand post demonetization in India, festive sales in the month of October 2016 were robust due to attractive gold prices. On the supply side, most miners liquidated excess rough inventories of 2015 during the year and also ramped up production in 2017, leading to an output level similar to that of three years ago.

At Asian Star, we have been focussed on our long-term growth strategy: consolidating our edge in manufacturing, focussing on quality, leveraging design as a differentiator in diamond jewellery and expanding our global presence to cover new geographies. While the operating environment continues to remain challenging, our focussed strategy has ensured we deliver consistent performance.

For the year 2016-17, our Consolidated Turnover increased to Rs. 3,493.86 crore, up from Rs. 3,302.20 crore in the previous year, an increase of 5.8 percent. PAT for the year was Rs. 66.13 crore against a PAT of Rs. 74.32 crore in 2015-16. The moderate decline was due to pressure on prices as a result of challenging economy and market conditions.

Good corporate governance and financial discipline continue to remain firm pillars at Asian Star. We strictly monitor our working cycle and enjoy high ranking with our bankers. We are listed in Top 500 companies of India in 2017, at rank 293 in Dun & Bradstreet’s and at rank 391 in Fortune India. Our uncompromising focus on quality has resulted in the Company becoming approved manufacturers of CANADAMARK and AUSTRALIAN DIAMONDS, which will go a long way in establishing us as an ethical and responsible diamantaire.

The outlook for business remains largely challenging, and yet, there are distinct signs of optimism. We are excited about further accelerating the growth momentum in our diamond jewellery business from an impressive 21 percent this year. As far as our diamond business is concerned, we remain cautiously optimistic and expect demand to pick up in the US and China.

I thank you for your continued support and assure you that we remain committed to delivering value for all our stakeholders.