Can someone throw light on these statistics I got from comparing annual report of March 2018 with March 2023.
PS Patel’s compensation was 4.09 Cr as March 2018 and went up to 15 Cr as of March 2023. (Yet to get the latest figures). During the same time, the companies net profit went up from 42Cr to 133Cr. PS Patel’s compensation has improved 4x whereas the PAT has grown 3x. Ratio wise, the comp is > 10% of the PAT (even though < 10 % of EBIDTA) Is this desirable?
Few thoughts:
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Even after factoring in delayed revenue from projects such as SDB, why is the board giving so generous compensation to one individual?
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When the PAT fell ~20% YOY (FY ’22 to FY ’23), PS Patel’s compensation was seen rising from 14.8 Cr to 15.6 Cr for the same timeframe. Isn’t compensation linked to performance? What is in it for shareholders?
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From what I know, PS patel does not offer shares to employees. How can this organisation sustain from this one man army. This does not sound well.
Please help me understand if this is par for the course? These certainly don’t seem like a good situation.
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