DuPont Decomposition
Why does PASUPTAC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.7% = 5.7% × 1.04 × 1.64
Latest: FY2025
Profitability
Net Margin
5.7%
5.9% →5.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
1.82x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.52x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.7 pp over 4 years. Driven by asset turnover declining (1.82x → 1.04x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 1.82 | 1.52 | 16.4% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 1.80 | 1.45 | 11.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.3% | 1.15 | 1.52 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 1.04 | 1.64 | 9.7% |
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.