We Think Titagarh Rail Systems Limited's (NSE:TITAGARH) CEO Compensation Looks Fair

Key Insights

• Titagarh Rail Systems' Annual General Meeting to take place on 15th of September
• Total pay for CEO Umesh Chowdhary includes ₹35.7m salary
• Total compensation is similar to the industry average
• Titagarh Rail Systems' EPS grew by 49% over the past three years while total shareholder return over the past three years was 427%

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It would be hard to discount the role that CEO Umesh Chowdhary has played in delivering the impressive results at Titagarh Rail Systems Limited (NSE:TITAGARH) recently. Coming up to the next AGM on 15th of September, shareholders would be keeping this in mind. 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 Titagarh Rail Systems

How Does Total Compensation For Umesh Chowdhary Compare With Other Companies In The Industry?

According to our data, Titagarh Rail Systems Limited has a market capitalization of ₹113b, and paid its CEO total annual compensation worth ₹36m over the year to March 2025. That is, the compensation was roughly the same as last year. Notably, the salary of ₹36m is the entirety of the CEO compensation.

For comparison, other companies in the Indian Machinery industry with market capitalizations ranging between ₹88b and ₹282b had a median total CEO compensation of ₹31m. From this we gather that Umesh Chowdhary is paid around the median for CEOs in the industry. What's more, Umesh Chowdhary holds ₹65m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 98% of total compensation represents salary and 2% is other remuneration. At the company level, Titagarh Rail Systems pays Umesh Chowdhary solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Titagarh Rail Systems Limited's Growth Numbers

Titagarh Rail Systems Limited's earnings per share (EPS) grew 49% per year over the last three years. In the last year, its revenue is down 5.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Titagarh Rail Systems Limited Been A Good Investment?

Boasting a total shareholder return of 427% over three years, Titagarh Rail Systems Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Titagarh Rail Systems pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

So you may want to check if insiders are buying Titagarh Rail Systems shares with their own money (free access).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.