Flextronics net jumps 40% during fiscal

NEW DELHI: Flextronics Software Systems (FSS) has reported a 40 per cent year-on-year increase in its consolidated net profit for the year 2004-05 to Rs 108.2 crore. The medium sized IT company's consolidated sales grew 33 per cent during the fiscal over the last year to touch Rs 481 crore figure.






The company has reported that for the quarter ended March 31, 2005, its consolidated net profit rose 42 per cent to Rs 30 crore over the same quarter of the last fiscal. The company's sales grew 28 per cent to Rs 130 crore over the fourth quarter of the last fiscal.





The company added 12 new customers during the fourth quarter of the fiscal in its focus areas of telecom and electronics manufacturing. Announcing the results, FSS President and Managing Director, Arun Kumar said, "Though we are not giving any future guidance, we are pleased with our predictable performance. We will continue to perform well in the markets that we operate in and carry forward this momentum."





Talking about the segments from where future growth will come - EVP and COO at FSS Manoranjan Mohapatra said that areas like VOIP and fixed/mobile networks are going to drive growth for the company in the near future. "We are doing some products and services around these areas," he added.





When asked about the stability of billing rates, Arun Kumar said that the company had successfully re-negotiated contracts for billing upwards, from 5 per cent to 8 per cent. "Our billing rates are stable to marginally up for this year," he informed.





Flextronics Software is 69.7 per cent owned by Singapore-based Flextronics International, the world's top contract electronics manufacturer. The firm is aiming to buy out the remaining holding in its Indian software services unit in order to give it more operating flexibility as a company.