I would like to express my gratitude to every shareholder who has been with us in ourjourney together. It gives me immense pleasure and pride to share with you the performanceof your company in the financial year 2019-2020.
During the financial years 2019-20 the Company evolved to be stronger despite theworld being hit by a global pandemic. Business continuity sustainability and de-riskingcontinue to be the mantras for the Company. The Company has been successful in enhancingthe synergistic benefits of integration through amalgamation and this has clearlyreflected in the financial results of FY20.
On a consolidated basis in the financial year 2019-20 the Company reported revenuesof INR 756 Cr EBITDA stood at INR 126 Cr which increased by 10% and Net profit wasreported at INR 86 Cr which increased by 51% against the previous financial year. TheCompany successfully reduced a significant portion of debt through healthy cash flowgeneration moreover the Board of Directors recommended an interim dividend of INR 2.5(50%) per equity share.
Flavour and fragrance being an integral and unavoidable part of our lives the industrywill continue to grow and provide great opportunities to players like us. The FMCG growthcontinues to be the driver for the F&F industry. With focus on operationalefficiencies through process improvements the Company will continue to increaseprofitability and thus contribute to the shareholder wealth. The Asia Pacific market forflavours and fragrances continue to be one of the fastest growing markets in the world.China being a major market for the aroma chemicals industry and the rest of the worldworking to diversify and reduce its reliance on the country for materials the IndianAroma chemicals industry stands at an advantageous position.
With decades of experience that your company holds in the F&F industry we have avery good understanding of the tastes and preferences of the consumers in the domestic aswell as the international markets. Along with this we have been successful inestablishing a sustainable sourcing policy for our raw materials with focus ongeographical diversification. Your company has a robust distribution network in placewhich helps deliver quality products across business verticals. The Company places immensefocus on innovation through research and development which has been a critical catalystfor growth.
The Company has a well thought out expansion plan in place for the next 3 years whichwill be directed to further strengthening the aroma chemicals base of the Company with afocus on generic speciality aroma chemicals. This would not only increase our supplies tothe global giants in the F&F industry but also help the Company deliver qualityflavours and fragrances at more competitive prices.
On behalf of the entire Oriental Aromatics Team I express my sincere thanks to all ourstakeholders for their whole-hearted support in our journey to achieving businessexcellence. I am confident that with the strength of our core capabilities and a dynamicteam of professionals your company is well- positioned for a great journey ahead.
|Dharmil A. Bodani |
|Chairman and Managing Director |