The Hindu Business Line : Goldstone Tele to consolidate products

GOLDSTONE Teleservices Ltd, the Hyderabad-based telecom and power related products and services firm, has announced plans to expand the product portfolio. The company is also considering to hive off its business process outsourcing (BPO) division to group company — Goldstone Technologies Ltd, the details of which are being worked out.

The Director of Goldstone Teleservices, Dr M.V.S.R. Kamesam, said the company plans to consolidate its products business that would mean expansion and possible investment of about Rs 50 crore over the next two years. It would also require a gradual shift in the business approach wherein the BPO business would be hived off to the group company. However, he hastened to add that this is only being considered at the board level.

As against Rs 12 crore turnover in 2004, the company has projected total turnover of Rs 36 crore during 2004-2005, with insulators contributing about Rs 18 crore; telecom products Rs 9 crore; and BPO Rs 9 crore.

During the quarter ended March 31, 2004, the company recorded revenues of Rs 3.68 crore and a net loss of Rs 4 lakh against the total income of Rs 2.88 crore and net loss of Rs 7 lakh for the corresponding quarter last year. For fiscal 2004, the company revenues were Rs 12.33 crore with a net profit of Rs 10 lakh.

Addressing a conference here on Saturday, Dr Kamesam said that the company plans to create a facility for energy meters, surge arresters and insulators. Most of the investment would be through internal accruals and debt. With the demand for power and telecom products set to grow following increasing investments in T&D set up, the company would be able to achieve total revenues of Rs 36 crore, including Rs 18 crore from insulators. The company claims it has Rs 6 crore worth orders on hand from Railways, BHEL, AP Transco and Maharashtra Electricity Board.