DuPont Decomposition
Why does CLSEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 8.0% × 1.38 × 1.24
Latest: FY2026
Profitability
Net Margin
8.0%
7.1% →8.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.38x
1.47x →1.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.24x
1.52x →1.24x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.2 pp over 5 years. Driven by leverage falling (1.52x → 1.24x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.1% | 1.47 | 1.52 | 15.9% |
| FY2023 | ₹0Cr | ₹0Cr | 8.7% | 1.65 | 1.34 | 19.3% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 1.34 | 1.39 | 16.2% |
| FY2025 | ₹0Cr | ₹0Cr | 6.9% | 1.55 | 1.32 | 14.0% |
| FY2026 | ₹0Cr | ₹0Cr | 8.0% | 1.38 | 1.24 | 13.7% |
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.