One red flag is that the promoter remuneration is high. Basically promoter wants 15-20% of PAT each year through dividend + salary. If the stake is reduced then salary has been proportionally increased, basically eating from both hands:
FY | CEO Salary | PAT | Dividend Payout | Holding (%) | Dividend (Cr) | [Salary]/PAT | [Salary+Div]/PAT |
---|---|---|---|---|---|---|---|
FY24 | 33.3 | 457 | 24% | 45.63% | 50 | 7.3% | 18.2% |
FY23 | 130.0 | 1,221 | 10% | 45.46% | 56 | 10.6% | 15.2% |
FY22 | 66.7 | 687 | 16% | 47.58% | 52 | 9.7% | 17.3% |
FY21 | 13.2 | 406 | 19% | 55.80% | 43 | 3.3% | 13.9% |
FY20 | 3.9 | 89 | 31% | 52.20% | 14 | 4.4% | 20.6% |
FY19 | 2.5 | 73 | 37% | 51.50% | 14 | 3.4% | 22.5% |
In FY19 and FY20 both, the remuneration was too high on standalone basis due to lower profitability, in both cases excess remuneration (of fixed salary) was still paid.
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