💰 Financial Performance

Profitability Margins

Operating Profit Margin increased to 0.13% in FY 2024-25 from 0.10% in FY 2023-24 (+35.69% YoY). Net Profit Margin improved to 0.09% from 0.06% (+48.78% YoY). Return on Net Worth grew to 0.20% from 0.08% (+141.54% YoY).

EBITDA Margin

Operating Profit Margin (EBIDTA) was 0.13% in FY 2024-25, up 35.69% YoY from 0.10% due to lower expenditure incurred during the year.

Credit Rating & Borrowing

Debt-Equity ratio is nil as of March 31, 2025. Interest Coverage ratio is not applicable (NA).

⚙️ Operational Drivers

Raw Materials

Diamonds, Gold, and Lab Grown Diamond (LGD) seeds.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, lower expenditure during the year contributed to a 35.69% increase in operating profit margins.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is focusing on technology adoption in diamond manufacturing and jewellery marketing. It aims to leverage the removal of Import of Goods at Concessional Rate (IGCR) conditions for duty-free imports of LGD seeds to lower production costs and boost demand in the Lab Grown Diamond sector.

Products & Services

Diamonds and Jewellery articles.

Brand Portfolio

StarlinePS.

New Products/Services

Lab Grown Diamonds (LGD) are a key focus area with expected growth due to favorable budgetary measures.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward Lab Grown Diamonds (LGD) and increased formalization. Online sales share is growing due to consumer preference for digital convenience, particularly among younger buyers.

Competitive Landscape

The sector is highly fragmented with increasing competition among Indian exporters.

Competitive Moat

The company is strengthening its moat by adopting systematic and structured processes in a largely unorganized and fragmented diamond and jewellery industry.

Macro Economic Sensitivity

Highly sensitive to Union Budget measures; the 2025 budget reduced customs duty on jewellery articles and parts from 25% to 20%, which is expected to boost domestic consumption.

Consumer Behavior

Shift toward younger, tech-savvy buyers preferring digital experiences and affordable luxury segments like LGDs.

Geopolitical Risks

Global scenarios causing currency rate fluctuations impact the business and export competitiveness.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by dynamic compliance requirements related to hallmarking and strengthened Anti-Money Laundering (AML) norms, which increase operational complexity and compliance costs.

Taxation Policy Impact

Customs duty on jewellery articles and parts was reduced from 25% to 20% effective February 2, 2025.

⚠️ Risk Analysis

Key Uncertainties

Tightening of credit lines from financial institutions and liquidity challenges in the sector could impact the ability to maintain high-value inventory.

Technology Obsolescence Risk

The company is mitigating technology risks through technology adoption in manufacturing and expanding its digital/e-commerce presence.

Credit & Counterparty Risk

Debtors Turnover Ratio was 14.38x in FY 2024-25; the increase was attributed to delayed collection of receivables from customers.