Sunraj Diamond Exports Ltd Management Discussions

The industry during the year 2024 - 2025 saw a steady decline in Business activity ranging from Raw Material Import, Manufacturing activity and Sales of finished goods. The prices of Raw Materials and Finished products continued to remain low with slow to sluggish growth. The continuous weakness in global markets could not stop prices from falling and by the FY year end. The rise of sales in Lab Grown Diamonds continued to rise.

The slow to negligible growth resulted in prices of Raw Materials reaming cheaper and profitable for a manufacturer. Those wishing to replenish stock, were able to purchase at lower prices, thus resulting in lower costing for the finished product. Continued opportunity for traders to increase their margins and purchase finished products at lower prices.

The threat from Lab Grown Diamonds saw its highest impact on the Natural Diamond industry, and continued erosion of market share of Natural Diamonds. This resulted in lower sales for Natural Diamonds. Global markets like the US and Europe have gradually opted for more Lab Grown Diamond purchases. Inflation continues to be a major concern for developed markets, which fuels the purchase of Lab Grown over Natural Diamonds due to the vast price differential.

The Company currently has only one business segment viz. trading in cut and polished diamonds and hence product-wise performance is not provided.

The Indian Diamond Industry is currently dealing with the threat of the US Tariffs on Diamonds and Jewellery being exported to the US. The US market consumes 40% of the total output of Finished products. This will create a short-term difficulty in the pipeline with proces being disruptive. We expect 2025-2026 to be a year of negative growth, and possibly difficult times for the traditional heavyweight consumer markets.

The Company identifies liquidity issues, sluggish sales as we approach the festive season as the major risks to conduct business.

The Company has a satisfactory internal control system, the adequacy of which has been mentioned in the Auditors Report.

There has been no material development on the Human Resource/Industrial relations front during the year.