DuPont Decomposition
Why does CHENNPETRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.9% = 4.9% × 3.18 × 1.80
Latest: FY2026
Profitability
Net Margin
4.9%
4.6% →4.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.18x
4.78x →3.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
2.48x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 26.6 pp over 4 years. Driven by asset turnover declining (4.78x → 3.18x), leverage falling (2.48x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.6% | 4.78 | 2.48 | 54.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.1% | 3.62 | 2.08 | 31.1% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 3.48 | 2.08 | 2.6% |
| FY2026 | ₹0Cr | ₹0Cr | 4.9% | 3.18 | 1.80 | 27.9% |
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.