Bengal Chemicals posts profit after 40 years
Central PSU Bengal Chemicals and Pharmaceuticals Ltd (BCPL) on Wednesday announced turnaround after 40 years in 2016-17 with a net profit of Rs 4 crore from a topline of Rs 111 crore.
"The company has made a turnaround in 2016-17 after a gap of 40 years registering a net profit of Rs 4 crore against a loss Rs 9.13 crore the previous year. In the next fiscal, we are aiming a profit of Rs 10 crore with new initiatives," BCPL managing director P M Chandriah told reporters here.
It was team work that led to the turnaround, he said.
"If I am given five years time, I will make this a Rs 200-300 crore company with Rs 30-40 crore profit," Chandriah said, while replying about government's outlook about a possible divestment.
The Centre was contemplating divestment or induction of any strategic partner as the PSU was a loss making entity since 1977 when government took over the company set up by Acharaya Prafulla Chandra Ray, the Father of Indian Chemistry, in 1901.
The Cabinet in December last year has cleared the sale of BCPL, India's first pharma company. It is one of the PSUs that NITI Aayog has identified for sale of government's majority stake to private companies in order to bring in greater efficiency and professionalism in their functioning.
"There is nothing as of now. But, I don't know what government will do. However, I have already pulled out this company out of coma and now it requires bit of care and I think this company has potential to become profitable on a sustained basis," he said.
In the current fiscal, the company will begin commercial production of injectable antibiotics which has potential to generate additional revenue of Rs 50 crore.
BCPL was expecting reduction of interest burden of Rs 8 crore for government loans.
The PSU also aims to pay-off remaining Rs 13 crore loan of United Bank of India in the FY18' to reduce the interest burden.