Gitanjali Gems reported revenue declined 1.5 percent year on year to $499 million (INR 34 billion) in the third quarter that ended December 31 as a slump in diamond sales outweighed an increase in jewellery revenue.

The company sold diamonds worth $120.1 million during the three months, a 20-percent decline over a year ago. Jewelry sales, meanwhile, advanced 7 percent to $397.5 million.

Net profit for the period sunk 18 percent to $11.6 million as expenses only dropped 1.2 percent – not enough to balance out the decline in revenue. The diamond segment’s profit dived 73 percent to $1 million and jewelry profit slid 37 percent to $31.5 million.

The business was negatively affected by regulatory restrictions on gold imports and unfavourable exchange-rate fluctuation.