DuPont Decomposition
Why does CONFIPET earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.5% = 2.8% × 1.23 × 1.92
Latest: FY2025
Profitability
Net Margin
2.8%
6.3% →2.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
1.36x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.92x
1.51x →1.92x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.4 pp over 4 years. Driven by net margin declining (6.3% → 2.8%), asset turnover declining (1.36x → 1.23x), leverage rising (1.51x → 1.92x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 1.36 | 1.51 | 12.9% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 1.35 | 2.02 | 11.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.9% | 1.23 | 1.86 | 8.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 1.23 | 1.92 | 6.5% |
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.