The Company's results by reporting segment showed Income from operations for Fragrance at Rs 242.01 crore, down by 5% comprising 90% of total sales and Flavours segment at Rs 26.56 crore, down by 4% comprising 10% of total sales.

Operating margin of the company fell 20 bps to 8.9%. Operating profit as a result decreased 7% to Rs 24.06 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 410 bps to 60.1% while Employee benefit expense fell 180 bps to 10.7%. Other expenses decreased 60 bps to 20.7%.

Other income fell 28% to Rs 11.95 crore while interest cost increased 281% to Rs 6.06 crore while depreciation rose 22% to Rs 7.94 crore. PBT before EO was down 36% to Rs 22.01 crore.

The company had nil EO items during the quarter compared to EO expense of Rs 2.78 crore in Q4FY18 related to termination cost in relation to its restructuring its operation at PFW Aroma Ingredients, Netherlands. PBT after EO fell 30% to Rs 22.01 crore.

Effective tax rate decreased to 8.5% from 37.6% leading 2% increase in PAT to Rs 20.15 crore. Considering share of profit or loss in associate and JV, Bottomline decreased 7% to Rs 19.59 crore.

For FY'19 S H Kelkar reported 2% increase in its consolidated net sales to Rs 1043.6 crore compared to corresponding previous year period while net profit of the company was down 6% to Rs 88.48 crore compared to FY'18.

Operating margin fell 280 bps to 12.7%. Operating profit as a result decreased 16% to Rs 132.07 crore.

Other income increased 8% to Rs 27.88 crore while interest cost increased 251% to Rs 13.95 crore while depreciation was up 31% to Rs 31.15 crore. PBT before EO was down 26% to Rs 114.85 crore. The company had nil EO items compared to net EO expense of Rs 12.85 crore related to termination cost in relation to its restructuring its operation at PFW Aroma Ingredients, Netherlands. PBT after EO fell 20% to Rs 114.85 crore.

Effective tax rate decreased 1180 bps to 23.5% leading 5% decrease in PAT to Rs 87.84 crore. Considering share of profit or loss in associate and JV, Bottomline decreased 6% to Rs 88.48 crore.

Commenting on the performance, Mr. Kedar Vaze, Whole Time Director and Group CEO at SH Kelkar and Company said, "This has been a challenging fiscal for us as we witnessed multiple macro-headwinds that impacted our performance in certain customer categories. Despite these broader market challenges, I am happy to share that we have gained a higher wallet share in our key customer accounts during the fiscal gone by. Our internal analysis of industry trends post GST implementation also suggests that there has been a structural shift towards larger & mid-sized players, leading to a notable decline in smaller accounts. We believe our revenue base has already been reset in FY19, and we are witnessing healthy traction in mid & large customers, with stronger focus towards enhancing the Company's business share in these accounts.

On the operational front, I am pleased to share that in the month of May, we have reached optimal utilization levels at our Greenfield manufacturing facility at Mahad. Operationalization of this facility will help improve availability of key raw materials, leading to increased cost efficiencies for SHK, going forward.

From a longer-term perspective, we foresee immense potential in our business and have accordingly undertaken several measures towards strengthening relationships with our existing customers, building and developing a robust product portfolio with new customers, and increasing operational and cost efficiencies. On the whole, we look forward to delivering steady growth in our financial and operating performance in FY2020."

The scrip is currently trading at Rs 153