DuPont Decomposition
Why does CENTUM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-15.1% = -5.5% × 0.73 × 3.80
Latest: FY2026
Profitability
Net Margin
-5.5%
-4.2% →-5.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.79x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.80x
4.53x →3.80x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~-15%. Driven by net margin declining (-4.2% → -5.5%), leverage falling (4.53x → 3.80x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.2% | 0.79 | 4.53 | -15.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.1% | 0.82 | 5.09 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 0.2% | 0.99 | 5.23 | 0.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.3% | 0.60 | 3.06 | -0.5% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.5% | 0.73 | 3.80 | -15.1% |
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.