DuPont Decomposition
Why does PIIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.4% = 21.0% × 0.64 × 1.21
Latest: FY2025
Profitability
Net Margin
21.0%
19.0% →21.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.64x
0.76x →0.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.18x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~16%. Driven by net margin improving (19.0% → 21.0%), asset turnover declining (0.76x → 0.64x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 19.0% | 0.76 | 1.18 | 17.1% |
| FY2024 | ₹0Cr | ₹0Cr | 22.1% | 0.71 | 1.23 | 19.3% |
| FY2025 | ₹0Cr | ₹0Cr | 21.0% | 0.64 | 1.21 | 16.4% |
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.