This 2018 letter accompanies the third and middle annual report of our currentive-year plan. FY 201718 has been very good for MSSL. Consolidated sales of yourcompany ended at INR 55858 Crore (USD 8.6 billion) a 33% increase compared to last year.Operating EBITDA is up 23% and our PAT increased by 3%. Consolidated Return on CapitalEmployed (ROCE) stands at 18%. MSSL's standalone ROCE is at 46%. The dividend pay-outfor FY 201718 constitutes 36% of consolidated proits after tax. Thisamounts to dividends of INR 2.25 per share. We have received new orders worth EUR 4.7billion for SMRPBV during FY 201718.
Our results conirm that we are keeping the pace on the organic growth path we haveset for ourselves for 2020. In this annual report therefore we want to give you aglimpse of some of the largest plants MSSL has ever built to get a better perspective onthe investments we are making for future organic growth. We are giving a more detailedlook at our new plants in Kecskemt Tuscaloosa and Zitlaltepec. You will meet some ofthe people who have worked extremely hard to build these plants from nothing to becomeimportant new anchors of support to our customers in their regions.
This will not only show a glimpse of the ramp-up and some of the new productiontechnologies MSSL has invested in but will also give a sense of the value these newplants have for the local communities. They are among the largest employers in theirareas. The support we have received from local governments and citizens has been verypositive. We are extremely proud of the fact that so many new people have joined us tohelp us serve our customers better. In line with our philosophy of creating value for allwe are creating sustainable value for the communities thus creating greater and morestable value for our customers. This in turn creates more value for our investors in thelong run. This brings me to the theme we have chosen for this annual report:
Believe you can and you are half way there.
The topline targets we set for ourselves may look ambitious but we have a clearvisibility. We have already undertaken some acquisitions. However we do not focus only onthe top line. We have always maintained that the targets we set ourselves have to beaccompanied by 40% ROCE. We believe that this focus has guided us on the right pathwhether it be partnerships or acquisitions - we will not make a decision just to hit aturnover target. Our returns have to create value for all involved. We are an organisationthat irmly maintains - if you believe you are half way there. And for 2020 we believewe are on track.
This year marks another special occasion for us. In September 2018 MSSL willcelebrate 25 years of being a listed entity. On the 9th of that month in 1993 ourstock was publicly traded for the irst time with an opening price of INR 41 (par valueRs. 10). Our total share capital at the end of the irst trading day was around INR 58million with market capitalisation of INR 238 million.
Today two and a half decades later our stock trades at around INR 341 (par value Re.1) and the total market capitalisation of MSSL stands at INR 717 billion as on 23.05.2018.This jump in value certainly gives a sense of the tremendous growth we have experiencedinancially organisationally and as individuals.
Naturally the journey has not been without its challenges. On many occasionscircumstances led us to remember a line from Tagore's song "Ekla Chalo Re":
If no-one heeds your call then walk alone
As an organisation and as teams together we have on occasions walked alone.
For example when our customers asked us to take over Visiocorp (now SMR) a companysimilar in size to our own that too in the midst of the Lehman crisis not everybodythought it wise. And yet we took a unanimous decision to do it. The turnaround has beenphenomenal thanks to the unwavering belief of our teams and our apprentices in their ownabilities. And our belief in them. Similarly when we acquired Peguform (SMP) and PKC people were apprehensive about such large acquisitions but we could see the largepotential and synergies. We believe that sometimes we have to have the courage to walkalone if we believe the path is the right one for us. This approach will continue to guideus as we move towards 2020 and begin to think about what lies beyond.
For the occasion of our 25th anniversary of being a listed company on India stockexchanges we are introducing a new MSSL logo. The logo is modern and forward-looking. Itcontains a visual symbol with three progressive bars which relect the three pillarsof our growth: organic growth growth through partnerships and inorganic growth. Theseprinciples will continue to guide us on our journey into the future. Our new logo will begradually rolled-out across our companies and facilities over the coming months.
In the light of our 25 years of listing I want to extend my special gratitude to ourinvestors and shareholders. Thank you for your support and trust. Your support hasenabled us to achieve many of our dreams. Your support has helped us gain the trust of theworld's most respected automotive companies and follow them into more and more countriesaround the world. We are grateful for your trust.
To our customers I want to say thank you for your continued faith in us. Our globalfootprint today is because of you for believing that no place in the world was too farfor us to serve you and your needs. We are grateful for the opportunities you brought usand are committed to the promises we make to you every day.
To our collaborators thank you for helping us help our customers and for helping usbring better quality new products and new technologies to them. To our employees andteams thank you for your commitment to support each other and for continuously improvingour work for our customers. We would like to thank all local state and nationalgovernments concerned bodies the banks and financial institutions in all countries inwhich we operate for their support. On behalf of MSSL thank you for your faith andbelief.
It continues to move us forward in this exciting journey towards 2020.
Vivek Chaand Sehgal