Shrenuj & Co. Ltd., a leading diamond and jewellery manufacturing based in Mumbai, recorded 34 percent drop (on y-o-y basis) in its net profit to $2.3 million at the close of the first fiscal quarter ending June 30, 2012. Net sales increased 6 percent to $129.1 million.

Sales at the company's diamond segment rose 6 percent to $98 million. The studded jewelry unit yielded 4 percent drop in sales to $33.4 million. Inter-segment revenues dropped 50 percent to $2.3 million.

The company attributed its decreased profits to increased finance costs and other expenses. Finance costs increased 53 percent to $5.7 million, while group expenses were up 5 percent to $121.1 million. There was a 33 percent drop in other income which valued $374,638 at the end of the three months.