It shouldn’t be a concern, IMO. Sec 197 of companies act prescribe upper limit of 11%. This too can be increased with shareholder resolution.
In last year (FY22), sales have grown by 40% and profits have doubled. So variable pay of Rs. 7 cr is tenable. It is better that the promoter of infra company is taking money in a rightful manner instead of doing some hera-pheri. So long as there are full disclosures, I am comfortable with the company.
Key monitorable is Q2 was a washout due to heavy rains in Gujarat and UP. Lets see how it pans out in Q3. I am also looking for company to win some part of central vista project. With SDB completion, they are eyeing for big ticket projects in Gujarat and Mumbai.
Disclosure: Invested and added on steep correction during result day. I may be biased 
| Subscribe To Our Free Newsletter |
