DuPont Decomposition
Why does CYIENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 8.4% × 0.96 × 1.34
Latest: FY2025
Profitability
Net Margin
8.4%
18.7% →8.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.18x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.26x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.5 pp over 3 years. Driven by net margin declining (18.7% → 8.4%), asset turnover improving (0.18x → 0.96x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 18.7% | 0.18 | 1.26 | 4.1% |
| FY2024 | ₹0Cr | ₹0Cr | 18.8% | 0.17 | 1.24 | 3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.4% | 0.96 | 1.34 | 10.7% |
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.