We Take A Look At Why Technocraft Industries (India) Limited's (NSE:TIIL) CEO Has Earned Their Pay Packet

Key Insights

• Technocraft Industries (India)'s Annual General Meeting to take place on 27th of September
• CEO Navneet Saraf's total compensation includes salary of ₹14.6m
• The total compensation is similar to the average for the industry
• Over the past three years, Technocraft Industries (India)'s EPS grew by 30% and over the past three years, the total shareholder return was 486%

The performance at Technocraft Industries (India) Limited (NSE:TIIL) has been quite strong recently and CEO Navneet Saraf has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27th of September. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Technocraft Industries (India)

How Does Total Compensation For Navneet Saraf Compare With Other Companies In The Industry?

Our data indicates that Technocraft Industries (India) Limited has a market capitalization of ₹47b, and total annual CEO compensation was reported as ₹15m for the year to March 2023. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹15m.

On examining similar-sized companies in the Indian Machinery industry with market capitalizations between ₹17b and ₹66b, we discovered that the median CEO total compensation of that group was ₹19m. From this we gather that Navneet Saraf is paid around the median for CEOs in the industry. Furthermore, Navneet Saraf directly owns ₹2.8b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	₹15m	₹15m	100%
Other	-	-	-
Total Compensation	₹15m	₹15m	100%

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9% is other remuneration. Speaking on a company level, Technocraft Industries (India) prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Technocraft Industries (India) Limited's Growth Numbers

Over the past three years, Technocraft Industries (India) Limited has seen its earnings per share (EPS) grow by 30% per year. Its revenue is down 2.1% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Technocraft Industries (India) Limited Been A Good Investment?

We think that the total shareholder return of 486%, over three years, would leave most Technocraft Industries (India) Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Technocraft Industries (India) rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Technocraft Industries (India) that investors should think about before committing capital to this stock.

Switching gears from Technocraft Industries (India), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.