Bengal Chemicals Aims at ₹36 Crore Net Profit by 2020

Bengal Chemicals and Pharmaceuticals Ltd, the country’s first pharma company, is hopeful of clocking a net profit of ₹36 crore by 2020, an over three-fold rise from the bottom-line it posted in the last fiscal. “We have doubled our profit for 2017-18 to ₹10 crore on a turnover of ₹78 crore. In the current fiscal, we are aiming at ₹20 crore net profit on a topline in excess of ₹100 crore,” Managing Director P M Chandraiah said here today, announcing the company’s earnings. “By 2020, we are confident of ₹36 crore net profit on revenues of ₹150 crore,” he said. In the fiscal ended March, Bengal Chemicals registered a growth of over 123 percent. Chandraiah said the company has crossed the consolidation phase and it will now be in the growth phase.

“The worst year for Bengal Chemicals was 2013-14, when the company posted a net loss of ₹36.55 crore. I am aiming to reverse the same in 2020,” he said. In the first quarter ended June, Bengal Chemicals posted a profit of ₹5.12 crore. Revenue from the pharma segment is ₹60 crore but the same has capacity for ₹500 crore, Chandraiah said, adding, the West Bengal government should place orders for pharma products to help the institution flourish. He also said it has sought the government’s approval to allow the 2007 pay scale, as the company posted two years of profits. Currently, employees are in the 1997 pay scale. Chandraiah said if the government accepts the 2007 pay scale, it would be a sign of “reversal of plans” for strategic sale. The Niti Aayog had recommended strategic sale of the company, following mounting losses till 2015-16. – Business Standard