DuPont Decomposition
Why does CASTROLIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
50.0% = 16.7% × 1.68 × 1.79
Latest: FY2026
Profitability
Net Margin
16.7%
16.4% →16.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.68x
0.38x →1.68x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.63x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 39.7 pp over 4 years. Driven by asset turnover improving (0.38x → 1.68x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 16.4% | 0.38 | 1.63 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 19.1% | 0.37 | 1.61 | 11.4% |
| FY2025 | ₹0Cr | ₹0Cr | 20.1% | 0.37 | 1.60 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 16.7% | 1.68 | 1.79 | 50.0% |
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.