Comments
Polaris Software Labs Ltd is optimistic that its loss-making subsidiary, Optimus Global Solutions, will turn profitable in future.
Optimus, the business process outsourcing service provider, reported an accumulated loss of Rs 28.22 crore as at March 31, 2011. The accumulated loss was on account of initial/set up stage operation in earlier years and on account of slowdown in BPO industry during the last three years. The management is optimistic about the future growth of Optimus and expects it will earn profits in future. The management believes that there is no other than temporary diminution in the value of its investments in Optimus, Polaris said in its annual report for 2010-11.
Performance
For the financial year ended March 31, 2011, Optimus reported a net loss of Rs 3.16 crore on revenue of Rs 16.67 crore.
Revenue dropped by nearly half in 2010-11 when compared with Rs 31.79 crore reported in the previous financial year.
From data mining and customer profiling to effective selling and centralised back office management, Optimus offers businesses the support required for CRM. Incorporated in 2002, Optimus BPO focuses on servicing clients in the banking, financial services and insurance domain investments in subsidiaries and associates.
Inorganic Growth
Polaris said that it will continue to look out for acquisitions during the current financial year. The company is looking forward to grow inorganically given the right merger and acquisition candidates that would help it build depth, breadth and scale in capabilities, it said.
During last financial year, Polaris made three acquisitions.
In May 2010, Polaris acquired 51 per cent equity stake in Indigo TX Software Private Ltd, a SaaS Software developer.
The company's platform Go Tx, is an enterprise brokerage solution for the securities market on a pay per use model catering to half a million customers.
During the year, it paid Rs 1.5 crore for the entire equity interests in SFL Properties Private Ltd for constructing new development centres.
Polaris also acquired IdenTrust Inc, a US-based Trusted Identity Solutions provider and one of the premier providers of digital Identity authentication services to several banks, the annual report says.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.