DuPont Decomposition
Why does PENIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 3.8% × 1.06 × 2.96
Latest: FY2025
Profitability
Net Margin
3.8%
3.5% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
0.93x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.96x
2.98x →2.96x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.2 pp over 3 years. Driven by asset turnover improving (0.93x → 1.06x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 0.93 | 2.98 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 1.15 | 3.01 | 11.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 1.06 | 2.96 | 11.9% |
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.