DuPont Decomposition
Why does CIEINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 9.1% × 0.85 × 1.44
Latest: FY2026
Profitability
Net Margin
9.1%
-1.6% →9.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.83x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.95x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.8 pp over 4 years. Driven by net margin improving (-1.6% → 9.1%), leverage falling (1.95x → 1.44x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -1.6% | 0.83 | 1.95 | -2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 0.90 | 1.63 | 18.8% |
| FY2025 | ₹0Cr | ₹0Cr | 9.6% | 0.88 | 1.49 | 12.6% |
| FY2026 | ₹0Cr | ₹0Cr | 9.1% | 0.85 | 1.44 | 11.1% |
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.