Asian Star Company Limited has announced the conversion of its associate entity M/s Shah Manufacturers from a Partnership Firm to a Limited Liability Partnership (LLP). The company's Board approved this conversion through a circular resolution dated December 19, 2025.

Board Approval and Regulatory Compliance

The Board of Directors of Asian Star Company Limited approved the proposed conversion through a circular resolution dated December 19, 2025. The decision was made pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring full regulatory compliance.

Director Interests and Disclosures

All partners of M/s Shah Manufacturers are Directors of Asian Star Company Limited and have properly disclosed their interests as required under the Companies Act, 2013. This transparency ensures compliance with corporate governance requirements and maintains the integrity of the conversion process.

Financial and Operational Impact

The conversion will not involve any transfer of assets or liabilities of Asian Star Company Limited. The only exception relates to the continuation of existing trade receivables and payables, which will transfer to the Limited Liability Partnership by operation of law. The company has clarified that this conversion does not constitute a related party transaction under Section 188 of the Companies Act, 2013.

Corporate Structure Enhancement

The conversion from Partnership Firm to Limited Liability Partnership represents a structural enhancement for the associate entity. This change will provide better legal protection and operational flexibility while maintaining the existing business relationships and obligations that will seamlessly transfer to the new LLP structure.

Asian Star Company Limited has confirmed that this disclosure fulfills all applicable provisions under SEBI (LODR) Regulations, 2015, demonstrating the company's commitment to transparent corporate governance and regulatory compliance.

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

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.