DuPont Decomposition
Why does CARYSIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.0% = 7.8% × 0.83 × 1.85
Latest: FY2025
Profitability
Net Margin
7.8%
8.9% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.83x
0.82x →0.83x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
2.35x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.3 pp over 3 years. Driven by net margin declining (8.9% → 7.8%), leverage falling (2.35x → 1.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.9% | 0.82 | 2.35 | 17.3% |
| FY2024 | ₹0Cr | ₹0Cr | 8.5% | 0.80 | 2.39 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.8% | 0.83 | 1.85 | 12.0% |
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.