The year 2018-19 was a significant year for our Company. The healthy growth in the yearis a testimony of the effectiveness of our strategies and above all the passion energyand extraordinary commitment of team Roto.
We are on track towards achieving our long-term goals. While we are proud of what wehave achieved but are equally aware of the challenges that lie ahead in light of slowingdown of economy. On global front economy is marred by bitter trade war between the twolargest economies and uncertainties in European Market on account of Brexit. As perInternational Monetary Fund reports growth in economy would decline in 2019 to 3.2% from3.6% in the year 2018. It is expected to rise to 3.5% in 2020. While growth in advancecountries are expected to decline to 1.9% in 2019 from 2.2% in 2018 and further decline to1.7% in 2020. However there are positive signs for emerging markets and developingcountries wherein growth is expected to rise to 4.7% in 2020 after a decline to 4.1% in2019 from 4.5% in 2018. On domestic front we were expecting that with the formation of astrong and stable Government with its special emphasis on ease of doing business Make inIndia initiatives and infrastructure development the business opportunities wouldincrease. However currently the economy has slowed down considerably and would need Govt.stimulus to boost economic growth in short-term. Our global outreach and spread of ourproducts across major industries gives us confidence of meeting our goals despiteprevailing economic environment.
We would like to highlight that FY19 has been a landmark year for your Company in termsof the performance. The standalone total income increased to Rs. 129.8 Crore as comparedto Rs. 110.5 Crore and the standalone profit after tax has increased to Rs. 15.3 Crorefrom Rs. 8.6 Crore in FY18. This shows a 17.5% growth in sales revenue giving an increaseof 77.9% in profit after tax. The consolidated total income has been Rs. 136.8 Croreagainst Rs. 116.0 Crore in FY18 and the consolidated Profit after tax has increased to'16.2 Crore against Rs. 8.4 Crore in FY18. This represented a 17.9% growth in salesrevenue resulting in an increase of 92.9% in profit after tax. Return on Capital employedhas been 29.3% (standalone) and 33.0% (consolidated against) 23.5% (standalone) and 26.2%(consolidated against) in the previous year. As part of our global expansion plans andintegrated- marketing strategy during the year Company acquired balance 40% stake inSingapore Joint Venture Company which is now a wholly owned subsidiary.
While we are focused and committed to grow our domestic operations our vision to beone of the top five global progressive cavity pump players is steadily taking shape. YourCompany has put a plan to embark upon a high growth trajectory of CAGR of 15 to 20% innext 5 year despite the perceived global economic challenges. Our strong foresight wouldcontinue to guide us for sustainable growth which in turn would lead to value creation forall our stakeholders.
We understand the need to be the preferred Positive Displacement Pump supplier toglobal customers and our growth will mirror their footprint. We have presence in UKAustralia US and South Africa. We will continue to increase our market share in thesegeographical areas at the same time we will expand our presence in other major markets.Currently we cater to customers in over 50 countries in all 5 continents. Our growth willcome from both organic and inorganic routes as we continue to scout for value-drivenglobal manufacturing or marketing assets in our industry for acquisitions.
Early into the business we invested in the best technologies and state-of-the-artR&D and manufacturing facilities. This has given us a competitive edge over our Indianpeers and we will continue to strengthen our technological know-how. Quality andreliability of our products has helped us to build a strong relationship with ourcustomers as our products help them to reduce their cost of ownership.
Human Resource and Talent is a key to any company's growth. With over 350 employeesspread across the world we are growing fast and people are our key differentiator. We arefocused on creating an environment based on the ethos of innovation; team spirit andemployee centric policies. We have employees in many geographical locations and are awareof cultural differences. We are respectful to each and every community and culture. We arecurrently engaged in creating a unified Roto culture drawing inspiration in thisdiversity.
We are poised for an exciting journey ahead defining the way the world thinks as moreglobal companies emerge out of India. We thank all our stakeholders for their support andfor being with us on our journey of high growth. At Roto Pumps the future is bright andfull of promise as we strive to garner global leadership in the high end pump industry inthe next five years.
Harish Chandra Gupta
Chairman & Managing Director