It's Unlikely That DRC Systems India Limited's (NSE:DRCSYSTEMS) CEO Will See A Huge Pay Rise This Year

Key Insights

• DRC Systems India will host its Annual General Meeting on 25th of September
• CEO Hiten Barchha's total compensation includes salary of ₹8.12m
• Total compensation is 102% above industry average
• DRC Systems India's EPS grew by 117% over the past three years while total shareholder return over the past three years was 102%

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Performance at DRC Systems India Limited (NSE:DRCSYSTEMS) has been reasonably good and CEO Hiten Barchha has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of September. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for DRC Systems India

How Does Total Compensation For Hiten Barchha Compare With Other Companies In The Industry?

According to our data, DRC Systems India Limited has a market capitalization of ₹2.9b, and paid its CEO total annual compensation worth ₹8.1m over the year to March 2025. That's a notable increase of 25% on last year. Notably, the salary of ₹8.1m is the entirety of the CEO compensation.

In comparison with other companies in the Indian Software industry with market capitalizations under ₹18b, the reported median total CEO compensation was ₹4.0m. Accordingly, our analysis reveals that DRC Systems India Limited pays Hiten Barchha north of the industry median. Moreover, Hiten Barchha also holds ₹59m worth of DRC Systems India stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. On a company level, DRC Systems India prefers to reward its CEO through a salary, opting not to pay Hiten Barchha through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at DRC Systems India Limited's Growth Numbers

DRC Systems India Limited has seen its earnings per share (EPS) increase by 117% a year over the past three years. It achieved revenue growth of 22% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 DRC Systems India Limited Been A Good Investment?

Most shareholders would probably be pleased with DRC Systems India Limited for providing a total return of 102% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

DRC Systems India rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for DRC Systems India that investors should be aware of in a dynamic business environment.

Important note: DRC Systems India 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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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.