At the outset I sincerely thank each one of you for being with us in our journey. Itgives me immense pleasure to share with you the outstanding performance of your Company inthe financial year 2018-19.
The financial year 2018-19 reflects the consolidated picture of the amalgamated entity.The operational synergies achieved by the amalgamation resulted in your company becomingone of the few forward integrated players in aroma chemicals in the flavour and fragranceindustry. As a result your company delivered one of its strongest performances for thisfinancial Year.
On a standalone basis the Companys revenue stood at INR 753 Cr whichrepresented an increase of 49% against the previous financial year EBITDA stood at INR116 Cr which increased by 66% and Net Profit was reported at INR 50 Cr which increasedby 64%.
Looking at the consolidated numbers during the financial year 2018-19 theCompanys revenue stood at INR 755 Cr registering an increase of 49% against theprevious financial year EBITDA stood at INR 116 Cr which increased by 78% and Net profitwas reported at INR 57 Cr which increased by 129% against previous year.
Given a healthy business performance in FY19 the Board of Directors has recommended adividend of INR 1 (20%) per equity share for the year.
Further as a show of appreciation to our shareholders the company had issued Bonusshares in the ratio of 1:1 in FY19 and also acted upon the feedback given by variousshareholders to improve the liquidity of the shares by doing a stock split from INR 10Face Value to INR 5 and by successfully listing the company on the National StockExchange of India Limited (NSE).
The largest market for flavour and fragrance is the US and UK and there is anincreasing demand in the developing markets of the Asia Pacific (APAC) region. Therestrictions imposed by the Chinese government on the domestic chemical industry tostrictly adhere to environmental norms coupled with the trade tension between US and Chinahas catapulted India to become the preferred choice. It is imperative for the globalF&F industry to tide over crucial challenges such as inconsistent raw materialssupply. Only those who have a complete command over the raw materials can make a globalF&F company augment their business.
Flavours and fragrances are an integral part of our lives. As the disposable income perhousehold increases in modern India there is a mammoth requirement for the industry tocater to new flavours and fragrances. The tremendous growth in segments likeconfectionery bakery food and beverages as well as personal care products with changingurban lifestyles has fostered the F&F industry.
Our in-depth understanding of the consumers requirements based on our marketresearch has helped us strengthen our position in the industry which has helped usleverage the plethora of opportunities available. Backed by an excellent distributionnetwork manufacturing expertise coupled with operational efficiency the innovative andvisionary approach has catalyzed your Companys growth. Your companys currentproduct portfolio includes 200 Aroma chemicals which are further formulated intoinnovative flavours and fragrances and are supplied to renowned players in the industry.
By sourcing the raw materials well in advance the problem faced due to the increase inraw material prices was successfully mitigated by your Company. Passing on the priceincreases to customers translated to commendable value in FY19 with volume growth andprofit growth across all product categories.
For any successful organization to streamline its growth a strong foundation ofbusiness practices and ethics is essential. Your company has adhered to its internalstrengths and core strategies. Your Company has continued to progress by staying focusedand by making continuous efforts to become sustainable. Your company will make furtherinvestments in certain chemistries to expand and strengthen the product portfolio. We arealso planning to strategically stabilise validate and fully utilise our Multi-PurposePlant (MPP) which will play a crucial role.
Our opportunities ahead are enormous. By staying true to our mission and values and bycontinually investing in building newer capabilities your company is positioned perfectlyto become the most valued partner for various FMCG companies.
As your company has spread its wings in both the domestic as well as internationalmarkets our expertise in this dynamic flavours and fragrances industry will propel us tostay ahead of our competitors and be future ready.
On behalf of the Board and the entire Oriental Aromatics Team I express my profoundthanks to the various State Government and the Central Government authorities ourstakeholders including our investors regulators bankers rating agencies customerssuppliers advisors and employees for their whole-hearted support in our journey toachieving business excellence. I solicit their continued support in taking our Company togreater heights. Valuable suggestions guidance and unflinching support of my colleagueson the Board are also gratefully appreciated.
I am confident that with the strength of our core capabilities and a dynamic team ofprofessionals your company is well-positioned for a great journey ahead.
Dharmil A. Bodani
Chairman and Managing Director