FY 2018-19 has been another strong year for MSSL. Consolidated sales of your companyended at INR 62572 crores (USD 9.1 billion) up by 12% from last year. PAT grew to INR1613 crores and revenues outside India was up by 13%. The dividend payout for FY 2018-19constitutes 35% of consolidated profits after tax. This amounts to dividends of INR 1.50per share. The total order book stands at over Rs. 1.47 lac crores (Euro 18.2 billion)approx. at SMRP BV level.
Our results confirm that the organic growth is strong and in line with our 2020targets. Many of you have asked us about inorganic growth. The revenue target we set forMSSL stands at USD 18 billion by March 31 2020. Of course we have simultaneously set theROCE target at 40%. Both together are the targets which means we will not chase one atthe expense of the other. For example we could get carried away by our revenue target andmake a large acquisition that will get us there but perhaps at a price that will depressour overall ROCE for years to come. We are constantly reviewing multiple acquisitiontargets. In some cases these are smaller companies; in other cases they are large. Incertain situations we are not the only bidding party and when valuations are too highfor us to meet our ROCE targets we refrain from taking the company over even when suchan acquisition would allow us to reach our 2020 revenue target. Instead we are workinghard to hit both targets simultaneously as we believe that these create the most value forall our stakeholders in the long run. Apart from the financial considerations the supportand trust of customers as well as the trust and perspective of existing teams andemployees plays a vital role in our decision to acquire.
One acquisition in which all of these elements came together well is the SMRacquisition and this year we commemorate the ten years of SMR being in the Mothersonfamily since we acquired the company in 2009. The shockwaves of the Lehmann crisis couldbe strongly felt and customers asked us to look at taking over Visiocorp which was introuble. The company was facing difficulty in meeting its obligations towards its keystakeholders. However there were many people inside the company who continued to believein the future. And this brings me to this year's theme: "Don't lower your goals tothe level of your abilities. Instead raise your abilities to the height of yourgoals."
This famous quote by Swami Vivekananda is very dear to me. It holds the key to personalgrowth. "On the way to any goal we are bound to meet challenges. Therefore if wemeet those challenges by lowering our goals we are bound to deprive ourselves of findingnew solutions meet new opportunities and scale new heights."This is true not onlyin our personal lives but also in our professional lives and as a company.
The turnaround of Visiocorp is a remarkable example of this. The company was in a verybad situation and people were disheartened. In fact many expected to be fired and manyothers left. We saw a lot of courage and good spirit in the middle management so we askedthem to become the top management. Rather than be fired they were promoted! Given theirdifficult circumstances it would have been very easy for them to set low targets.Instead they aimed high. When we made the new 5-year plan at the end of 2009 they werepart of setting a ROCE target of 40% even though their own ROCE was nowhere near that. Andyet they hit that target during 2015-16.
The SMR acquisition also doubled our size making Motherson truly international. Thisexposure brought SMP on our path. It connected us to global OEMs who provided us with moreopportunities. SMR became the biggest test of our approach to making internationalacquisitions and sharpened our ability to turn companies around by bringing in ourphilosophy and management practices. That is why we look at the SMR story in more depth inthe theme section by speaking to five people who were critical to the process and arestill with us today. SMR allowed us to put MSSL on a new track.
In addition we have also created a special article on SMRC in this annual report. Youwill learn more about its products locations history and outlook in that article. We areextremely grateful for having the opportunity to bring a remarkable French company intoMSSL. Through SMRC we have gained access to new interior solutions closer contacts withthe French OEMs as well as many synergies with our existing interior and exteriorsolutions. We see great opportunities for further improvements and creating more value forour customers and our investors.
As we enter into the final year of the current 5-year plan we are encouraged by yourtrust and unwavering support. Our sincere gratitude goes to you - our investors andshareholders. Stories like those of SMR are possible only because of your faith in us. Ithas enabled us to create value for our customers our employees the communities weoperate in and of course to you as investors.
To our customers thank you for your faith in us. Today we support you in 41 countriesand we are grateful for the opportunities to bring more cultures and more great peopleinto our Group who are focused on supporting you all the way day in day out.
To our collaborators thank you for ensuring that we bring the best most efficient andeffective solutions to our customers on time. Thank you for bringing your passiontechnologies and the spirit of collaboration to our joint efforts. To our employees andteams thank you for your dedication and willingness to raise our abilities to the levelof our goals to help our customers better.
We would like to thank all local state and national governments concerned bodies andthe banks and financial institutions in all countries where we operate for their supportand collaboration. On behalf of MSSL thank you all.
Together we will approach our 2020 targets and start to look beyond!
Vivek Chaand Sehgal
Chairman Motherson Sumi Systems Limited