DuPont Decomposition
Why does CPCAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.0% = 61.8% × 0.10 × 1.14
Latest: FY2025
Profitability
Net Margin
61.8%
42.8% →61.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.11x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.08x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 3 years. Driven by net margin improving (42.8% → 61.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 42.8% | 0.11 | 1.08 | 5.0% |
| FY2024 | ₹0Cr | ₹0Cr | 56.2% | 0.16 | 1.20 | 10.8% |
| FY2025 | ₹0Cr | ₹0Cr | 61.8% | 0.10 | 1.14 | 7.0% |
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.