DuPont Decomposition
Why does FRACTAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.6% = 8.1% × 0.97 × 1.62
Latest: FY2025
Profitability
Net Margin
8.1%
10.2% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
0.88x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.65x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.3 pp over 3 years. Driven by net margin declining (10.2% → 8.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.2% | 0.88 | 1.65 | 14.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.2% | 0.92 | 1.68 | -3.4% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 0.97 | 1.62 | 12.6% |
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.