Digjam’s Q3 net down Rs 5.19 cr

Owing to the current economic slowdown and its impact on demand and import cost,

textile company Digjam witnessed a net loss of Rs 5.19 crore for the quarter ended December 31, 2010. It had posted net profit of Rs 6 lakh during the corresponding quarter of last financial year.

In its filing to the BSE, the company has stated, “Slowdown in demand for fabrics in the domestic and international markets and a sharp rise in imported wool cost due to firming up of Australian Dollar during the period, as compared to the corresponding period last year, severely impacted the performance.”

The company’s net sales for the quarter ended December 31, 2011 also dipped to Rs 33.03 crores as against Rs 35.37 crores in the same quarter of previous fiscal. Digjam, an S K Birla Group Company, began nearly 60 years back in Jamnagar, Gujarat. Since then, it has been catering to the ever-growing demand of the clothing and fashion industry, in the domestic as well international markets. In recent years, the company restructured its business portfolios to focus as a textile company manufacturing and marketing fabrics and ready-to-wear clothing under its own brands. The company’s product range is available at its exclusive showrooms and over 4,000 other retail outlets across the country.