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

CEO & Managing Director

It has been another year of rough weather and turbulence for the diamond industry. The overall challenging macro-economic conditions created by modest growth in major high-income economies combined with a sharp fall in global trade and weakening of all BRICS economies, with the exception of India, impacted demand adversely.

The diamond industry globally also had to face the paradoxical situation where on the one hand, miners held on firmly to their selling prices of rough, on the other hand, retail prices came down substantially. This led to an evident squeeze on profitability. The weakening of the Indian Rupee has made cost of import of rough consistently higher compared to a few years ago. Evidently, a rough year.

And yet, amidst and in spite of this rough, at Asian Star, we emerged as a gem.

A combination of adaptable portfolio, strong financial discipline and trust of leading mining companies in the world has been instrumental as we navigate the rough weather. The fact that we have overcome the challenging transactional environment is clearly reflected in our performance for the year.

Our consolidated turnover for the year was Rs. 3,225 crores compared to Rs. 3,250 crores in the previous year, a marginal drop of 0.77%. However, in spite of pressure on topline, we were able to deliver marked improvement in margins. For the year, Profit after Tax increased to Rs. 82 crores against Rs. 78 crores in the previous year, an improvement of 5.13%.

Our Consolidated Turnover for the year increased to Rs. 3,300.83 crores against Rs. 3,221.26 crores in the previous year, an increase of 2.5 per cent. Impacted by higher costs and pressure on prices, our PAT (excluding Other Income and Exceptional Items) marginally declined to Rs. 73.14 crores compared to Rs. 74.62 crores in the previous year, a decline of 2 per cent.

Considering the challenging environment, this performance is remarkable.

As I look ahead into the near-term future, I do see silver lining on the dark clouds. There are clear signs of economic recovery in major global markets. Further, supply is forecast to remain limited as no new mines are being discovered, resulting in a more demand-supply equilibrium. However, even though these are definite signs of optimism, at Asian Star, we remain cautious. What we can assure is the fact that we are prepared and equipped to overcome the challenges, and as things improve, capitalise on the opportunities. We have the necessary experience and expertise, knowledge and insight, presence and reach, capabilities and capacities, agility and dexterity, and above all, the confidence and conviction to overcome challenges and outlast the difficult times.

I thank you all for your trust and faith in Asian Star.