DuPont Decomposition
Why does CENTURYPLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.1% = 4.9% × 1.06 × 1.96
Latest: FY2026
Profitability
Net Margin
4.9%
10.4% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.35x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.96x
1.43x →1.96x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.0 pp over 5 years. Driven by net margin declining (10.4% → 4.9%), asset turnover declining (1.35x → 1.06x), leverage rising (1.43x → 1.96x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 10.4% | 1.35 | 1.43 | 20.1% |
| FY2023 | ₹0Cr | ₹0Cr | 10.4% | 1.34 | 1.42 | 19.7% |
| FY2024 | ₹0Cr | ₹0Cr | 8.4% | 1.09 | 1.61 | 14.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.1% | 0.99 | 1.94 | 7.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 1.06 | 1.96 | 10.1% |
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.