We Take A Look At Whether ITD Cementation India Limited's (NSE:ITDCEM) CEO May Be Underpaid

Key Insights

• ITD Cementation India's Annual General Meeting to take place on 7th of August
• Salary of ₹11.8m is part of CEO Jayanta Basu's total remuneration
• The overall pay is 37% below the industry average
• Over the past three years, ITD Cementation India's EPS grew by 72% and over the past three years, the total shareholder return was 813%

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The impressive results at ITD Cementation India Limited (NSE:ITDCEM) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 7th of August which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for ITD Cementation India

How Does Total Compensation For Jayanta Basu Compare With Other Companies In The Industry?

According to our data, ITD Cementation India Limited has a market capitalization of ₹133b, and paid its CEO total annual compensation worth ₹53m over the year to March 2025. Notably, that's an increase of 25% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹12m.

For comparison, other companies in the Indian Construction industry with market capitalizations ranging between ₹88b and ₹280b had a median total CEO compensation of ₹85m. That is to say, Jayanta Basu is paid under the industry median.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. In ITD Cementation India's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ITD Cementation India Limited's Growth

Over the past three years, ITD Cementation India Limited has seen its earnings per share (EPS) grow by 72% per year. Its revenue is up 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has ITD Cementation India Limited Been A Good Investment?

We think that the total shareholder return of 813%, over three years, would leave most ITD Cementation India Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for ITD Cementation India that investors should think about before committing capital to this stock.

Important note: ITD Cementation India is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.