DuPont Decomposition
Why does CENTEXT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.0% = 2.3% × 2.52 × 2.06
Latest: FY2025
Profitability
Net Margin
2.3%
1.9% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.52x
2.36x →2.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.06x
2.31x →2.06x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 4 years. Driven by asset turnover improving (2.36x → 2.52x), leverage falling (2.31x → 2.06x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 2.36 | 2.31 | 10.4% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 2.80 | 2.04 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 2.36 | 2.18 | 10.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.3% | 2.52 | 2.06 | 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.