This Is The Reason Why We Think Premier Explosives Limited's (NSE:PREMEXPLN) CEO Might Be Underpaid

Key Insights

• Premier Explosives to hold its Annual General Meeting on 30th of September
• Salary of ₹12.7m is part of CEO Thati, Venkaiah Chowdary's total remuneration
• The overall pay is 30% below the industry average
• Premier Explosives' total shareholder return over the past three years was 597% while its EPS grew by 91% over the past three years

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The solid performance at Premier Explosives Limited (NSE:PREMEXPLN) has been impressive and shareholders will probably be pleased to know that CEO Thati, Venkaiah Chowdary has delivered. This would be kept in mind at the upcoming AGM on 30th of September 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. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Premier Explosives

How Does Total Compensation For Thati, Venkaiah Chowdary Compare With Other Companies In The Industry?

At the time of writing, our data shows that Premier Explosives Limited has a market capitalization of ₹32b, and reported total annual CEO compensation of ₹19m for the year to March 2025. Notably, that's an increase of 15% over the year before. In particular, the salary of ₹12.7m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Chemicals industry with market capitalizations ranging between ₹18b and ₹71b had a median total CEO compensation of ₹27m. That is to say, Thati, Venkaiah Chowdary is paid under the industry median. Furthermore, Thati, Venkaiah Chowdary directly owns ₹93m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	₹13m	₹10m	67%
Other	₹6.3m	₹6.1m	33%
Total Compensation	₹19m	₹16m	100%

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Premier Explosives sets aside a smaller share of compensation for salary, in comparison to the overall 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 Premier Explosives Limited's Growth Numbers

Premier Explosives Limited has seen its earnings per share (EPS) increase by 91% a year over the past three years. In the last year, its revenue is up 66%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Premier Explosives Limited Been A Good Investment?

Most shareholders would probably be pleased with Premier Explosives Limited for providing a total return of 597% over three years. 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Premier Explosives that you should be aware of before investing.

Switching gears from Premier Explosives, 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.