DuPont Decomposition
Why does CEMPRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.3% = 4.1% × 1.40 × 3.54
Latest: FY2025
Profitability
Net Margin
4.1%
2.3% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.40x
0.33x →1.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.54x
4.05x →3.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.2 pp over 3 years. Driven by net margin improving (2.3% → 4.1%), asset turnover improving (0.33x → 1.40x), leverage falling (4.05x → 3.54x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 0.33 | 4.05 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 0.38 | 3.96 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 1.40 | 3.54 | 20.3% |
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.