Bengal Chemicals eyes 25% rise in revenue in FY19
Kolkata: State-owned Bengal Chemicals & Pharmaceuticals Limited, which made a net profit of Rs 8.91 crore during 2017-18, is eyeing a Rs 15-20 crore of net profit in the current fiscal on the back of an expected 25 per cent rise in its revenue, an official said on Thursday.
The company, founded by Father of Indian Chemistry Acharya Prafulla Chandra Ray, had reported a net profit of Rs 4.5 crore in 2016-17 for the first time in six decades.
"In 2017-18, our revenue from operations stood at Rs 80 crore. We are expecting to clock a Rs 100 crore revenue during 2018-19 (FY19)," company's Managing Director and Director (Finance) P.M. Chandraiah told reporters here.
The central public sector unit reduced procurement costs and stopped financial leakages during the last fiscal.
Chandraiah also said: "The company also looks at a net profit of Rs 15-20 crore in 2018-19."
The first pharmaceutical company established in India, which was running in profits till 1940s, posted a net loss of Rs 9.13 crore in 2015-16.
He said the firm repaid the entire bank loan of Rs 28 crore during the last fiscal and previous year and also repaid Rs 6 crore of loan taken from the central government.
"We had Rs 22 crore of interest-bearing loans, of which we have repaid Rs 6 crore already and remaining Rs 16 crore of debt would be repaid by December," he said, adding that the firm has an additional Rs 107 crore of interest-free loan taken from the centre.
According to him, the interest bearing loan had Rs 74 crore of accrued interests and the firm had urged the government to reduce the interest rate at par with the market rates, he said.
Speaking on the Calcutta High Court order that struck down the company's decision to sell surplus land at a factory in the suburbs of Kolkata with an objective to repay entire loan, he said: "The Centre had moved to division bench challenging the order."