DuPont Decomposition
Why does PCBL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.9% = 2.4% × 0.73 × 2.82
Latest: FY2026
Profitability
Net Margin
2.4%
9.6% →2.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.92x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.82x
1.83x →2.82x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.4 pp over 5 years. Driven by net margin declining (9.6% → 2.4%), asset turnover declining (0.92x → 0.73x), leverage rising (1.83x → 2.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.6% | 0.92 | 1.83 | 16.3% |
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 1.06 | 1.92 | 15.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.7% | 0.57 | 3.48 | 15.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 0.72 | 3.17 | 11.8% |
| FY2026 | ₹0Cr | ₹0Cr | 2.4% | 0.73 | 2.82 | 4.9% |
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.