Vimta Labs Limited's (NSE:VIMTALABS) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Vimta Labs' Annual General Meeting to take place on 6th of June
• Total pay for CEO Harita Vasireddi includes ₹13.4m salary
• The overall pay is comparable to the industry average
• Vimta Labs' total shareholder return over the past three years was 192% while its EPS grew by 17% over the past three years

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It would be hard to discount the role that CEO Harita Vasireddi has played in delivering the impressive results at Vimta Labs Limited (NSE:VIMTALABS) recently. Coming up to the next AGM on 6th of June, 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Vimta Labs

Comparing Vimta Labs Limited's CEO Compensation With The Industry

According to our data, Vimta Labs Limited has a market capitalization of ₹22b, and paid its CEO total annual compensation worth ₹17m over the year to March 2025. That's a notable increase of 27% on last year. In particular, the salary of ₹13.4m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Indian Life Sciences industry with market capitalizations ranging between ₹8.6b and ₹34b had a median total CEO compensation of ₹16m. So it looks like Vimta Labs compensates Harita Vasireddi in line with the median for the industry. Moreover, Harita Vasireddi also holds ₹164m worth of Vimta Labs stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. There isn't a significant difference between Vimta Labs and the broader market, in terms of salary allocation in the overall compensation package. 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 Vimta Labs Limited's Growth Numbers

Vimta Labs Limited has seen its earnings per share (EPS) increase by 17% a year over the past three years. In the last year, its revenue is up 19%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Vimta Labs Limited Been A Good Investment?

Boasting a total shareholder return of 192% over three years, Vimta Labs 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.

To Conclude...

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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Vimta Labs that you should be aware of before investing.

Important note: Vimta Labs is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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