Asian Star Co Reports 36% Decline in Q2 Net Profit Despite Revenue Growth

Asian Star Co , a prominent player in the diamond and jewelry industry, has reported its financial results for the second quarter of the fiscal year. The company's performance shows a mixed picture, with revenue growth accompanied by a significant decline in net profit.

Financial Highlights

Metric	Q2 FY2024	Q2 FY2023	YoY Change
Revenue	759.00	654.00	+16.1%
Net Profit	12.13	19.00	-36.2%
EBITDA	24.45	26.35	-7.2%
EBITDA Margin	3.89%	3.80%	+9 bps

Asian Star Co reported a consolidated net profit of ₹12.13 crore for the second quarter, marking a significant decrease of 36.2% compared to ₹19 crore in the same quarter of the previous year. This decline in profitability comes despite a notable increase in revenue.

Revenue Growth

The company's revenue for Q2 FY2024 stood at ₹759 crore, representing a substantial growth of 16.1% year-over-year from ₹654 crore in Q2 FY2023. This increase in revenue indicates strong demand for the company's products and potentially improved market conditions in the diamond and jewelry sector.

Profitability Metrics

Despite the revenue growth, Asian Star Co experienced a decline in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The EBITDA for Q2 FY2024 was ₹24.45 crore, down by 7.2% from ₹26.35 crore in the corresponding quarter of the previous year.

However, it's worth noting that the EBITDA margin showed a slight improvement, increasing from 3.80% in Q2 FY2023 to 3.89% in Q2 FY2024. This marginal expansion in EBITDA margin suggests that the company has managed to maintain its operational efficiency to some extent, despite the challenges faced.

Factors Affecting Performance

The divergence between revenue growth and profit decline suggests that Asian Star Co might be facing increased costs or competitive pressures in the market. Factors such as rising raw material prices, higher operational expenses, or changes in product mix could have contributed to the squeeze on profitability.

Outlook

While the revenue growth is a positive sign for Asian Star Co, the significant drop in net profit may be a concern for investors. The company's ability to translate top-line growth into bottom-line improvements will be crucial for its financial health moving forward.

As the diamond and jewelry industry continues to evolve, Asian Star Co's ability to adapt to market conditions and maintain its competitive edge will be critical for its long-term success.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
0.0%	+0.47%	+0.14%	+1.45%	-10.02%	+9.14%

Asian Star Company Limited , a prominent player in the diamonds and jewellery industry, has announced robust financial results for the first quarter, along with the reappointment of key executives.

Financial Performance

The company reported a consolidated net profit of Rs. 1,934.45 crore for the quarter, marking a significant increase from Rs. 1,748.55 crore in the same quarter last year. This represents a year-on-year growth of approximately 10.6%.

Consolidated revenue from operations stood at Rs. 71,654.44 crore, demonstrating Asian Star Company's strong market position and operational efficiency.

On a standalone basis, the company reported impressive figures:

Metric	Amount (Rs. in crore)
Net Sales	55,364.51
Net Profit	1,603.77

Segment-wise Performance

The company's two main business segments, diamonds and jewellery, both contributed significantly to the overall revenue:

Segment	Revenue (Rs. in crore)
Diamonds	54,689.71
Jewellery	20,134.29

Executive Reappointments

In a strategic move to ensure continuity in leadership, the Board of Directors has approved the reappointment of three key executives for five-year terms, subject to shareholder approval:

Mr. Vipul Shah - Reappointed as CEO & Managing Director
Mr. Arvind Shah - Reappointed as Wholetime Director & CFO
Mr. Rahil Shah - Reappointed as Wholetime Director

These reappointments will be effective from January 1, 2026, to December 31, 2030.

Executive Profiles

Mr. Vipul P. Shah: A board member since the company's incorporation, Mr. Shah has been instrumental in creating Asian Star's brand image overseas. He brings expertise in Banking & Treasury Operations and Rough Sourcing.
Mr. Arvind T. Shah: Recognized as an expert in diamond manufacturing activities, Mr. Shah plays a key role in manufacturing and procurement of rough diamonds from overseas.
Mr. Rahil V. Shah: As the youngest Wholetime Director, Mr. Shah is involved in the day-to-day functioning of diamond manufacturing, rough sourcing, and domestic jewellery operations. He has been credited with implementing new technologies at the factory and upgrading the company's ERP system.

Auditor's Review

V. A. Parikh & Associates LLP, the company's auditors, conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Asian Star Company's strong financial performance and strategic leadership reappointments position it well for continued growth in the competitive diamonds and jewellery market.