Why do Private Companies (Not MNC's), pay less despite having good profits & revenue?

This is not correct. I am in the private after a stint as an officer in government. Private salaries is 4 time more than government jobs

I have modified the topic name, thanks for your reply, I could correctly express what I wanted to ask, in private companies other than MNC's salaries are less & increments as well are not organized or set in a proper manner.

Not all private companies pay less than what one deserves! I have worked for a private company for 4 years involved in Bridge construction for BRO (Border Road Organization) which paid me more than what government or MNC  pays for the same post. I think you're talking about non-organized private sector which has yet to do a lot. 

How can we come to know whether an organization is organized or non organized? I was under the impression that all private non MNC's work in the same manner giving less salaries & less increments.

As Sunil and MG Singh has rightly mentioned, many private organizations pay higher salaries than the government. Such organizations also give many perks and other benefits apart from salaries. These perks might include medical reimbursement, rent allowance, vehicles, travel allowance, PF and other benefits. But those private organizations working on small scales cannot give their employees high salaries.

In India the small private unorganized companies / individual do pay less but that is to be expected as they have very little resources. 

MNCs pay good along with other perks. They are at par or even better than Government salaries. The only negative being the cut throat competition to perform and job insecurity with the needs and fluctuation in Global market.

Smaller private organizations do not pay much because they have limited resources,and  their turn over is not as huge as MNCs . Moreover, these organiztions do not hire or ask for high grade qualifications or a great experience. You do not have to undergo cut throat tough competition to get the job.

Arunima Singh wrote:

MNCs pay good along with other perks. They are at par or even better than Government salaries. The only negative being the cut throat competition to perform and job insecurity with the needs and fluctuation in Global market.

Smaller private organizations do not pay much because they have limited resources,and  their turn over is not as huge as MNCs . Moreover, these organiztions do not hire or ask for high grade qualifications or a great experience. You do not have to undergo cut throat tough competition to get the job.

True, but will it not be good to formalise this sector as well & bring it into some uniformity in terms of pay & benefits compensation package?

An MNC job is good in many respects but the pension scheme is not at all a respectable one. I feel this is a big constraint for the employees of MNCs. As retirement comes nearer the staffs become too worried because of a huge deficit in earning.  

There are any number of pension schemes that one can join while working , both run by govt and private companies  ... If one is careful with their earning it  is not difficult to plan for future financial security