The company has three divisions—home care & personal care, pharma and industrial chemicals — with pharma, and home care & personal care divisions contributing around 65% and 30% of its total sales, respectively.
Bengal Chemicals & Pharmaceuticals (BCPL) is looking to clock around Rs 120 crore total income and around Rs 20 crore net profit for this financial year. It registered highest-ever revenue as well as net profit in its H1 results. Aided by a 60% year-on-year jump in sales in its pharma division, the company posted revenues of `60 crore and net profit of `11 crore for H1 ended September 30. During the period, home product sales saw an over 18% y-o-y growth.
“In the first half of the financial year, the company has posted highest-ever income and highest ever net profit,” said BCPL’s managing director PM Chandraiah.
“Performance of the company has changed after a significant improvement in working culture. We have been able to create a desired corporate culture here, it is for the first time in so many years,” Chandraiah told FE in an interview.
Notably, the Kolkata-based public sector company, founded by legendary chemist Acharya Prafulla Chandra Roy in 1901, had reported a net profit of `4.5 crore in 2016-17 — the first profit in six decades. The company had performed very well till early 1950s, but started making losses from mid-1950s.
During the last financial year, it had posted a net profit of `10.06 crore on a turnover of `78.01 crore.
The company has three divisions—home care & personal care, pharma and industrial chemicals — with pharma, and home care & personal care divisions contributing around 65% and 30% of its total sales, respectively. For the pharma division, currently the injectable category is the main contributor to the increase in sales. Commercial production of the injectable section commenced in January this year at its Maniktala factory in Kolkata. BCPL produces critical antibiotics like ceftriaxone, cefotaxime and meropenem, where major phama companies are its competitors. Prices of the products are determined by the central government’s department of pharmaceuticals. Prices were last revised in 2013, and next revision is due in December this year. It cannot sell pharmaceuticals in retail markets.
Chandraiah, who has been instrumental in turning around the PSU pharma company, said, “I am estimating around `120 crore total income, and around Rs 20 crore net profit for this financial year…our target is to clock `500 crore revenue by 2025, which is very much achievable.”
According to him, the central government’s planned stake sale issue is not presenting a problem currently on securing orders from clients for pharma products. “The company is not facing any trouble now after we have assured government agencies that the company would be able to supply the medicines within the time schedule,” the MD said.
BCPL was facing pressures from its clients and raw materials suppliers after the Union cabinet in December 2016 had said the government would explore the option of strategic sale, in which the Centre has a 100% shareholding. However, the matter is now sub-judice.