Deigjam second quarter net loss widens

Textile firm Digjam reported widening of its standalone net loss at Rs 3.84 crore for the second quarter ended September 30, 2015. The company had reported a net loss of Rs 1.32 crore for the July-September quarter of last fiscal.

Total income from operation during the quarter under review was also down 12.52 per cent to Rs 31.29 crores as against Rs 35.77 crores for the same period last fiscal.

The company recently entered into a 51:49 joint venture partnership with Scotland-based premium fabric player Holland and Sherry for distribution of their products in India .There will be two persons each from Digjam and Holland and Sherry on the board for the newly formed company - Holland and Sherry India Pvt Ltd. Digjam will also make use of Holland and Sherry’s network to distribute former’s products. In the long run, Digjam may also start manufacturing certain Holland and Sherry products at its facility in Jamnagar, Gujarat, which has an annual production capacity of five million metres of clothes.

The company is looking forward to register a turnover of Rs 160 crores in 2015/16 from Rs 130 crores last year. Fifty percent of the company's revenues are driven by exports. The newly formed JV may also strengthen its presence in the woollen and worsted fabric market.