DuPont Decomposition
Why does FINPIPE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 14.6% × 0.54 × 1.22
Latest: FY2026
Profitability
Net Margin
14.6%
22.8% →14.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.54x
0.86x →0.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.36x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.1 pp over 5 years. Driven by net margin declining (22.8% → 14.6%), asset turnover declining (0.86x → 0.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.8% | 0.86 | 1.36 | 26.8% |
| FY2023 | ₹0Cr | ₹0Cr | 5.8% | 0.69 | 1.28 | 5.1% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 0.61 | 1.25 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 19.3% | 0.56 | 1.21 | 13.1% |
| FY2026 | ₹0Cr | ₹0Cr | 14.6% | 0.54 | 1.22 | 9.6% |
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.