DuPont Decomposition
Why does PAUSHAKLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.6% = 23.6% × 0.37 × 1.23
Latest: FY2025
Profitability
Net Margin
23.6%
25.3% →23.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.41x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.20x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.7 pp over 4 years. Driven by net margin declining (25.3% → 23.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 25.3% | 0.41 | 1.20 | 12.3% |
| FY2023 | ₹0Cr | ₹0Cr | 25.6% | 0.51 | 1.17 | 15.3% |
| FY2024 | ₹0Cr | ₹0Cr | 26.5% | 0.43 | 1.18 | 13.3% |
| FY2025 | ₹0Cr | ₹0Cr | 23.6% | 0.37 | 1.23 | 10.6% |
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.