DuPont Decomposition
Why does CONCOR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.4% = 15.7% × 0.57 × 1.17
Latest: FY2025
Profitability
Net Margin
15.7%
13.8% →15.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
0.59x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.21x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~10%. Driven by net margin improving (13.8% → 15.7%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 13.8% | 0.59 | 1.21 | 9.8% |
| FY2023 | ₹0Cr | ₹0Cr | 14.4% | 0.61 | 1.20 | 10.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.6% | 0.62 | 1.19 | 10.7% |
| FY2025 | ₹0Cr | ₹0Cr | 15.7% | 0.57 | 1.17 | 10.4% |
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.