DuPont Decomposition
Why does 21STCENMGM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.2% = 75.6% × 0.29 × 1.12
Latest: FY2025
Profitability
Net Margin
75.6%
146.9% →75.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.30x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.09x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 23.9 pp over 3 years. Driven by net margin declining (146.9% → 75.6%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 146.9% | 0.30 | 1.09 | 48.1% |
| FY2024 | ₹0Cr | ₹0Cr | 92.0% | 0.63 | 1.04 | 60.4% |
| FY2025 | ₹0Cr | ₹0Cr | 75.6% | 0.29 | 1.12 | 24.2% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.