Evidence of Success of Square Pharmaceuticals

Evidence of Success of Square Pharmaceuticals:

The history of Square Pharmaceuticals tells that the dream initiated to flourish as reality when Mr. Samson H Chowdhury started with a small pharmacy at Ataikula Village in Pabna during 1952. He turned this business into a partnership pharmaceutical company with three of his friends in 1958 which eventually turned out as Square Pharmaceuticals of today. We can see the success of the company which is evident in terms of their growth as an organization, market share, turnover and any other financial index. We shall focus on their financial statistics, market share and market expansion throughout the years to judge their success.

Financial Overview:

We have considered fiscal year 2003-04 to 2008-09 for our purpose in this case to analyze the growth in terms of gross turnover, & net profit after tax, are significant. Both gross turnover and net profit after tax has been doubled during this period without significant fluctuation in any specific fiscal year. Growth rate and consistency is evident in the following charts and graphs:

Gross Turnover:

Square is very successful in terms of gross turnover. The growth is consistent and the growth rate is also increasing consistently. We can see the growth of gross turnover during last six fiscal years from the following table and figure visually.

Year Gross Turnover (In Million BDT)

2003-04 5482

2004-05 6199

2005-06 7085

2006-07 8711

2007-08 9565

2008-09 11366

Table 1.1: Gross Turnover (In Million BDT)

Figure: 1.1 Gross Turnover (In Million BDT)

Net Profit after Tax:

To analyze the success of Square Pharmaceuticals we have chosen net profit after tax as the second financial index of interest. This index also gives a good impression about their growth. During last six fiscal years they achieved consistent growth in net profit after tax with an exception during FY 2005-2006 when the net profit decreased slightly. However they returned to the positive growth immediately from the next Fiscal Year and continued. Following table and figure shows the scenario graphically:

Year Net Profit After Tax (In Million BDT)

2003-04 970

2004-05 1255

2005-06 1165

2006-07 1303

2007-08 1381

2008-09 1890

Table 1.2: Net profit after Tax (In Million BDT)

Figure 1.2: Net profit after Tax (In Million BDT)

Human Resource:

Company growth in terms of human resources or employment creation is also very significant. Number of executives has been doubled during last six Fiscal Year, while number of staffs and workers also increased more than 150% during the interval under consideration. Following table and graph gives a statistical as well as graphical view of the scenario:

Year Executives Staff Workers

2003-04 895 686 661

2004-05 949 740 705