Increases to NCL Industries Limited's (NSE:NCLIND) CEO Compensation Might Cool off for now
Key Insights
- NCL Industries' Annual General Meeting to take place on 25th of September
- Total pay for CEO Gautam Kalidindi includes ₹13.8m salary
- The overall pay is 453% above the industry average
- Over the past three years, NCL Industries' EPS fell by 23% and over the past three years, the total shareholder return was 19%
Despite positive share price growth of 19% for NCL Industries Limited (NSE:NCLIND) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 25th of September may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
View our latest analysis for NCL Industries
How Does Total Compensation For Gautam Kalidindi Compare With Other Companies In The Industry?
At the time of writing, our data shows that NCL Industries Limited has a market capitalization of ₹9.6b, and reported total annual CEO compensation of ₹21m for the year to March 2025. We note that's a decrease of 39% compared to last year. We note that the salary portion, which stands at ₹13.8m constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the Indian Basic Materials industry with market capitalizations below ₹18b, we found that the median total CEO compensation was ₹3.8m. Hence, we can conclude that Gautam Kalidindi is remunerated higher than the industry median. What's more, Gautam Kalidindi holds ₹543m 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 | ₹14m | ₹13m | 66% |
| Other | ₹7.2m | ₹22m | 34% |
| Total Compensation | ₹21m | ₹35m | 100% |
Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9% of the pie. NCL Industries pays a modest slice of remuneration through salary, as compared to the broader industry. 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 NCL Industries Limited's Growth Numbers
Over the last three years, NCL Industries Limited has shrunk its earnings per share by 23% per year. It saw its revenue drop 24% over the last year.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has NCL Industries Limited Been A Good Investment?
NCL Industries Limited has served shareholders reasonably well, with a total return of 19% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for NCL Industries (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from NCL Industries, 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.
Valuation is complex, but we're here to simplify it.
Discover if NCL Industries might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.