Bengal Chemicals posts profit after 63 years

MD and Director Finance,BPCL

After 63 years, Bengal Chemicals and Pharmaceuticals (BCPL) has posted an annual profit, of Rs 4 crore, in the financial year 2016-17 (FY17).

In 1977, the Union government took over the management of the company, founded by chemist and entrepreneur P C Ray in 1901. It was nationalised in 1981.

In FY17, the company earned Rs 111 crore, about two per cent less than what it earned in 2015-16. But, it made a profit, compared to a loss of Rs 9 crore FY16.

A senior company official said the company achieved a gross margin of Rs 23 crore in the last financial year. This improved its financial position by a little more than Rs 43 crore.

BPCL director of finance, P M Chandraiah, who holds additional charge as managing director, said reduction in procurement costs and stoppage in financial leakages were instrumental in turning the company around.

Direct cost of gross sales reduced to 48 per cent in FY17, against 59 per cent the previous year.

After BCPL posted a dismal revenue of Rs 17.07 crore in 2013-14, down 38 per cent from 2012-13, and a gross loss of Rs 36.55 crore, things started looking up the next year.

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