Investor Centre MD's Message

MD's Message

It is my privilege to present to you the Annual Report of Asian Star Company Limited for the year 2019-20.

The year gone by was a challenging one with the added backdrop of heightened economic uncertainty. Continued anxiety emanating from US - China trade war, Brexit related concerns & overall geopolitical tensions led to subdued global economic growth with dampening investor confidence and sentiments.The outbreak of Covid-19 pandemic further aggravated an already difficult situation. 

The Indian Gems and Jewellery Industry has been facing rough headwinds since the last few years. Banks reduced their exposure to the industry which affected the working capital management and regular operations. The Covid-19 pandemic further dimmed the prospects of gems and jewellery market, which was already under pressure with the slowdown in the global economy. The outbreak led to stalling of manufacturing and trading activities, cancellation of business events, deferment of committed orders, and reduced demand. Given the global crisis situation and restrictions on trade and travel, exports of gems and jewellery took a severe hit in the last quarter.

During the year, India’s gross exports of gems and jewellery stood at USD 36 billion, as compared to USD 40 billion in the previous year. Exports of cut and polished diamonds declined 21.4% to USD 18.7 billion from USD 23.8 billion in the previous year. Gold jewellery exports stood at USD 11.99 billion as against USD 11.78 billion in 2018-19, registering a moderate growth of 1.8%.

These strong and severe macro headwinds, both in the economy as well as within the industry, impacted our performance too.

Our Consolidated Turnover for the year stood at Rs. 3,052.94 crore, as compared to Rs. 3,642.19 crore in the previous year. PBT for the year dropped to Rs. 77.61 crore as against Rs. 136.90 crore achieved in the previous year. Nevertheless, the performance of our jewellery division was the bright beacon on the horizon. Our efforts in strengthening the foundation of our jewellery business over the past few years have paid off well. In spite of a rough year, our jewellery business revenue has grown substantially; revenue stood at Rs. 653.32 crore as against Rs. 594.39 crore in 2018-19, registering a healthy growth of 9.9%. Our domestic sales are solid and jewellery exports to the US and Europe have been witnessing an upward trend. What gives us an edge is our market relevant designs and value additions, stringent adherence to quality, and customer-centric service teams.

While the weather was rough during the year, Asian Star has always endured rough weather and emerged stronger. At Asian Star, we have always stayed true to our values, integrity, and ethics, while focusing on our brand commitment of quality and reliability. Troughs and peaks are part of business cycles. Our focus on sustaining our unique business competencies, fiscal prudence, lasting relationships as well as our people policies give us an edge in the marketplace. It is this simple philosophy of purpose and principles that has enabled us to navigate through similar rough seas in the past.

Amidst these trying times, we continue to believe in the power of HOPE. We remain confident and hope that winds of change will soon usher in bright and cheerful days.

As the world gradually fights the Covid-19 pandemic and starts its determined march to recovery, we would like to pay our sincere tribute to all the frontline workers and medical staff for their dedicated service. Our deep condolences are also with the millions across the world who have lost their loved ones in the pandemic. As we gear up to embrace the opportunities and challenges in a post-Covid world, there is just one word that gives us the courage and conviction, faith and belief as well as strength and optimism – HOPE.

Thank you for your support and cooperation.