Kirloskar Electric Co has announced a postal ballot to seek shareholder approval for a proposed increase in the remuneration of its Director (Finance) and Chief Financial Officer (CFO), Sanjeev Kumar Shivappa. The company aims to raise Mr. Shivappa's annual compensation from ₹65 lakh to ₹75 lakh, effective July 1, 2025.

Proposed Remuneration Increase

The proposed salary revision comes as a recommendation from the company's Nomination and Remuneration Committee, based on the company's performance. If approved, the new remuneration structure would represent a significant increase from previous years:

*Proposed, subject to shareholder approval

Voting Process

Kirloskar Electric has initiated an e-voting process for shareholders to cast their votes on this special resolution. Key dates for the voting process include:

• Cut-off date for voter eligibility: November 14, 2025
• E-voting commencement: November 22, 2025, at 9:00 AM
• E-voting conclusion: December 21, 2025, at 5:00 PM

The company has engaged Central Depository Services (India) Limited (CDSL) to facilitate the e-voting process, ensuring a smooth and secure voting experience for shareholders.

Company Performance Context

While specific financial details for the upcoming fiscal year are not provided, it's worth noting the company's recent financial performance. For the financial year 2024-25, Kirloskar Electric reported:

• Standalone revenue from operations: ₹54,382.00 lakhs
• Standalone profit after tax: ₹1,725.00 lakhs

These figures provide context for the proposed remuneration increase, suggesting that the company's financial position may be a factor in the decision to revise the CFO's compensation.

Industry Comparison

To put the proposed remuneration in perspective, here's how it compares to CFO compensations in similar companies within the industry:

The proposed remuneration for Kirloskar Electric's CFO, at ₹75.00 lakhs (0.75 crores), appears to be conservative compared to industry peers, especially considering the differences in company turnover.

Shareholders are encouraged to review the complete postal ballot notice and cast their votes through the e-voting platform provided by CDSL. The outcome of this resolution may have implications for the company's executive compensation structure and overall financial strategy moving forward.

Kirloskar Electric Co , a prominent player in the Indian electrical equipment sector, has reported a remarkable improvement in its financial performance for the second quarter, despite facing a decline in revenue. The company has also announced significant changes in its senior management structure.

Key Financial Highlights

EBITDA Performance

The most striking aspect of Kirloskar Electric's Q2 results is the substantial growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The company reported an EBITDA of ₹64.00 million, a significant increase from ₹0.60 million in the same quarter last year. This remarkable growth indicates a strong improvement in the company's operational efficiency and cost management strategies.

Profitability Improvement

The EBITDA margin saw a substantial enhancement, rising to 4.53% from 0.04% in the previous year. This 4.49 percentage point increase reflects the company's ability to generate higher profits from its operations, despite the challenging revenue environment.

Revenue Challenges

While Kirloskar Electric demonstrated impressive profitability gains, it faced headwinds in terms of revenue. The company's Q2 revenue declined to ₹1.40 billion from ₹1.62 billion in the corresponding period last year, representing a 13.58% decrease. This decline suggests potential challenges in market demand or competitive pressures in the electrical equipment sector.

Net Profit Growth

Despite the revenue contraction, Kirloskar Electric managed to increase its net profit to ₹63.00 million, up from ₹52.00 million in the same quarter of the previous year. This 21.15% growth in net profit, coupled with the significant EBITDA improvement, indicates effective cost control measures and possibly a more favorable product mix.

Management Reorganization

In a significant development, Kirloskar Electric has implemented changes in its senior management due to internal reorganization, effective immediately. The reorganization affects multiple senior positions including Vice Presidents across various divisions such as Human Resources, Information Technology, Legal & Secretarial, and different business units like HT Machines, LT Transformers, Cast Resin Transformers, Oil Filled Transformers, Switchgear, and Sales & Marketing divisions.

Financial Results Approval

The company's Board of Directors, led by Executive Chairman Vijay Ravindra Kirloskar, approved the unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2023, at their meeting on November 11, 2023. These results were subject to limited review by statutory auditors and approved by the Audit Committee.

Looking Ahead

The company's ability to substantially improve its EBITDA and net profit in the face of revenue challenges demonstrates resilience and effective management. However, the decline in revenue warrants attention and may require strategic initiatives to stimulate growth in the coming quarters.

Investors and market observers will likely keep a close watch on Kirloskar Electric's future performance, particularly its ability to maintain profitability improvements while addressing the revenue decline. The company's strategies for market expansion, product innovation, and cost optimization, along with the impact of the recent management reorganization, will be crucial in shaping its financial trajectory in the competitive electrical equipment market.