We Take A Look At Why BF Utilities Limited's (NSE:BFUTILITIE) CEO Compensation Is Well Earned
Key Insights
- BF Utilities' Annual General Meeting to take place on 24th of December
- Total pay for CEO Bhalchandra Mitkari includes ₹15.6m salary
- The overall pay is comparable to the industry average
- BF Utilities' EPS grew by 14% over the past three years while total shareholder return over the past three years was 75%
We have been pretty impressed with the performance at BF Utilities Limited (NSE:BFUTILITIE) recently and CEO Bhalchandra Mitkari deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 24th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
Check out our latest analysis for BF Utilities
How Does Total Compensation For Bhalchandra Mitkari Compare With Other Companies In The Industry?
According to our data, BF Utilities Limited has a market capitalization of ₹25b, and paid its CEO total annual compensation worth ₹16m over the year to March 2025. We note that's an increase of 13% above last year. In particular, the salary of ₹15.6m, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Indian Construction industry with market capitalizations ranging from ₹9.0b to ₹36b, the reported median CEO total compensation was ₹17m. From this we gather that Bhalchandra Mitkari is paid around the median for CEOs in the industry.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | ₹16m | ₹14m | 96% |
| Other | ₹690k | ₹430k | 4% |
| Total Compensation | ₹16m | ₹14m | 100% |
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. BF Utilities has gone down a largely traditional route, paying Bhalchandra Mitkari a high salary, giving it preference over non-salary benefits. 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.
BF Utilities Limited's Growth
BF Utilities Limited has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is down 7.4% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 BF Utilities Limited Been A Good Investment?
We think that the total shareholder return of 75%, over three years, would leave most BF Utilities Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
BF Utilities pays its CEO a majority of compensation through a salary. The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for BF Utilities that investors should look into moving forward.
Switching gears from BF Utilities, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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