I hope that all of you and your families are safe and well during these unprecedentedtimes. We are reminded of the value of our well-being and of the importance of therelationships with those we hold dear. I hope you all feel the strength in adjusting tothese new realities.
FY 2019_20 has been a year of strong performance for MSSL closing the period of our 5th5_Year Plan. Consolidated sales of your company ended at INR 674 billion (USD 8.9 billionincluding netted revenue in reported revenue as per IND AS 115). Operating EBITDA hasdeclined by 2.7% and our PAT reduced by 27.4%. The company reported a consolidated ROCE of10% however if we adjust for acquisitions made post announcement of Vision 2020 as wellas for Green_ields at Tuscaloosa and Kecskemet ROCE was at 24%. The standalone ROCE cameto 31% which was impacted due to drop in revenues and further lock down in March 2020.The dividend payout for FY 2019-20 has been declared at 49% of consolidated pro_its aftertaxes amounting to dividends of INR 1.50 per share. We have received new orders worth EUR5.5 billion for SMRPBV during FY 2019_20.
The quote on the cover and the theme of this year's annual report summarises thephilosophy of Roald Amundsen about meeting adversity on your mission.
Amundsen led the _irst successful expedition to reach the South Pole by foot inDecember 1911. It says: "You don't wait until you're in an unexpected storm todiscover that you need more strength and endurance." To give you some context thejourney to the pole and back took Amundsen's team of 5 men and 52 dogs a total of 99 days walking 3440 kilometres. The mean annual temperature at the South Pole is minus49.5C. So his achievement was absolutely astounding. However most historians point outthat what was most impressive were his preparations. For example he could have missed allhis supply depots and still would have had enough to go an extra 100 miles. But ofcourse he also made preparations to ensure he wouldn't miss the supply depots.
Applied to our situation today of course the word "storm" in the quotepoints to the COVID_19 pandemic. The theme points to
a broader lesson as well. Nobody can reliably predict when a storm of this kind comes.At the same time we know from history that they always come. We have to be prepared sothat we can respond and draw from a reservoir of strength. Equally important is that weprepare for the situation when conditions turn in our favour so that we can move forwardquickly and decisively.
Naturally our results have been impacted by the unprecedented challenges posed by theCOVID_19 pandemic. We are present in 41 countries that are all dealing and _ighting thecoronavirus pandemic and its aftermath.
However every crisis also brings opportunities. Most of our plants have now resumedproduction and countries are on the road to recovery. Vaaman has summarised the globalMotherson response to COVID_19 separately for you on page 10.
What have we achieved in this 5-year plan?
To answer this question I want to take you back for a moment to why we started theconcept of our 5_Year Plans. When we listed MSSL in 1993 Motherson was a company witha top-line of just INR 19 crores. It was a time when many global OEMs and automotivesuppliers were coming to India which was a huge challenge.
We had to think differently. We needed to _ind new ways to retain the interests of ourcustomers as well as create growth prospects for our people. So we launched the 5_YearPlans which gave everyone a view of where Motherson was going. Internally it alsostimulated the imagination of our people to invent ways of using our existingmanufacturing capabilities to come up with new solutions for our customers.