DuPont Decomposition
Why does CHEMPLASTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-15.9% = -6.6% × 0.67 × 3.60
Latest: FY2026
Profitability
Net Margin
-6.6%
11.0% →-6.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
1.05x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.60x
3.29x →3.60x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 54.0 pp over 5 years. Driven by net margin declining (11.0% → -6.6%), asset turnover declining (1.05x → 0.67x), leverage rising (3.29x → 3.60x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.0% | 1.05 | 3.29 | 38.0% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 0.85 | 3.14 | 8.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.0% | 0.65 | 3.55 | -9.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.5% | 0.67 | 3.14 | -5.3% |
| FY2026 | ₹0Cr | ₹-0Cr | -6.6% | 0.67 | 3.60 | -15.9% |
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.