DuPont Decomposition
Why does PICCADIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.1% = 12.5% × 0.71 × 1.68
Latest: FY2025
Profitability
Net Margin
12.5%
5.1% →12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.71x
1.08x →0.71x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.68x
2.56x →1.68x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~15%. Driven by net margin improving (5.1% → 12.5%), asset turnover declining (1.08x → 0.71x), leverage falling (2.56x → 1.68x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.1% | 1.08 | 2.56 | 14.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 1.03 | 2.56 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 14.1% | 1.05 | 2.18 | 32.3% |
| FY2025 | ₹0Cr | ₹0Cr | 12.5% | 0.71 | 1.68 | 15.1% |
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.