With Flextronics as the new owner, the top brass saw it as a god-sent opportunity to help them scale up, while retaining expertise as a niche player. This finally resulted in DIRECTV offloading its 55% stake to Flextronics International for $226 mn.

The company's topline and bottomline grew by 34% and 40% y-o-y respectively. Margins on the other hand, were flat. It, however, managed to control staff costs-from 50% of revenue during 2003-04 to 47% during 2004-05. Telecom software, higher other income-Rs 9.4 crore-and a lower rate of growth in depreciations and tax costs helped net profits rise by 40%, from Rs 77.4 crore to Rs 108.2 crore. The year also saw FSS focusing on telecom service providers and BPOs for future growth. The services sector contributed 81% of revenues.