International Gemological Institute Of India Banks On Lab-Grown Diamonds Certification For Future Growth

International Gemological Institute Of India Ltd. pins hopes on the lab-grown diamond certification segment for growth in coming quarters.

The affordability and disruptive nature of lab-grown diamonds make it an excellent alternative for all those who want a diamond, Tehmasp Printer, chief executive officer and managing director of IGI, told NDTV Profit.

“What lab-grown is doing right now is increasing the consumer base; the millennials and Gen-Z aspire to have a diamond, and today they have an affordable alternative,” he said.

He said that in Q3 lab-grown diamond prices were under pressure, and last year the company was holding on to its certification costs for at least six-seven months. “Because of the affordability of lab-grown diamonds, we are now averaging 1.5 to 2 carats plus, so the bulk of the certification is now coming through the higher rate of the lab-grown diamonds,” he said.

Emphasising that both natural and lab-grown diamonds are essentially the same in terms of their composition, Printer said the price difference between them is decided by their origin. While natural diamonds are mined from the earth, the other one is man-made. 

Elaborating this difference, Eashwar Iyer, CFO, IGI said that while natural diamonds are scarce because of taking billions of years to form, lab-grown diamonds are more readily available. This difference between demand and supply makes natural diamonds a lot more expensive compared to lab-grown diamonds.

Commenting on the business performance, Iyer said, “Coming to performance, we have grown close to 17% from a revenue standpoint for the full year, and that is on the back of a 27% volume growth. The key volume growth that has happened for us over the last 2-3 years is driven by the lab-grown segment. That is the key driver of the volume growth and the corresponding revenue growth.”

In CY24, IGI’s consolidated revenue stood at Rs 1,053.16 crore, compared to Rs 898 crore in CY23, marking a year-on-year growth of 17%. Its consolidated earnings before interest, taxes, depreciation and amortisation stood at Rs 600 crore in CY24, an increase of 21% from Rs 496 crore in CY23. Net profit stood at Rs 427.29 crore in CY24, compared to Rs 331 crore in CY23.

Shares of IGI ended 1.28% lower at Rs 328 on the NSE on Friday, compared to the benchmark 0.03% rise in Nifty 50.