Bengal Chemicals targets `36 crore net profit by 2020
Kolkata: Bengal Chemicals and Pharmaceuticals Ltd, the country's first pharma company, is hopeful of clocking a net profit of Rs 36 crore by 2020, an over three-fold rise from the bottomline it posted in the last fiscal.
"We have doubled our profit for 2017-18 to Rs 10 crore on a turnover of Rs 78 crore. In the current fiscal, we are aiming at Rs 20 crore net profit on a topline in excess of Rs 100 crore," Managing Director P M Chandraiah said here on Friday, announcing the company's earnings.
"By 2020, we are confident of Rs 36 crore net profit on revenues of Rs 150 crore," he said.
In the fiscal ended March, Bengal Chemicals registered a growth of over 123 per cent.
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 Rs 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 Rs 5.12 crore.
Revenue from the pharma segment is Rs 60 crore but the same has capacity for Rs 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 payscale, as the company posted two years of profits. Currently, employees are in the 1997 payscale.
Chandraiah said if the government accepts the 2007 payscale, 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.