The Andhra Sugars Limited's (NSE:ANDHRSUGAR) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
- Andhra Sugars' Annual General Meeting to take place on 25th of September
- CEO Pendyala Chowdary's total compensation includes salary of ₹5.86m
- The total compensation is 118% higher than the average for the industry
- Andhra Sugars' EPS declined by 49% over the past three years while total shareholder loss over the past three years was 45%
The Andhra Sugars Limited (NSE:ANDHRSUGAR) has not performed well recently and CEO Pendyala Chowdary will probably need to up their game. At the upcoming AGM on 25th of September, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for Andhra Sugars
How Does Total Compensation For Pendyala Chowdary Compare With Other Companies In The Industry?
According to our data, The Andhra Sugars Limited has a market capitalization of ₹11b, and paid its CEO total annual compensation worth ₹13m over the year to March 2025. We note that's a decrease of 38% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at ₹5.9m.
For comparison, other companies in the Indian Chemicals industry with market capitalizations below ₹18b, reported a median total CEO compensation of ₹6.1m. Accordingly, our analysis reveals that The Andhra Sugars Limited pays Pendyala Chowdary north of the industry median. What's more, Pendyala Chowdary holds ₹1.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹5.9m | ₹5.1m | 44% |
| Other | ₹7.5m | ₹16m | 56% |
| Total Compensation | ₹13m | ₹22m | 100% |
On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Andhra Sugars pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at The Andhra Sugars Limited's Growth Numbers
The Andhra Sugars Limited has reduced its earnings per share by 49% a year over the last three years. It achieved revenue growth of 14% over the last year.
Few shareholders would be pleased to read that EPS have declined. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has The Andhra Sugars Limited Been A Good Investment?
With a total shareholder return of -45% over three years, The Andhra Sugars Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which is potentially serious) in Andhra Sugars we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.