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
11.8% = 19.7% × 0.50 × 1.20
Latest: FY2026
Profitability
Net Margin
19.7%
15.9% →19.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.50x
0.68x →0.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.27x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.0 pp over 5 years. Driven by net margin improving (15.9% → 19.7%), asset turnover declining (0.68x → 0.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.9% | 0.68 | 1.27 | 13.8% |
| 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 | 20.8% | 0.65 | 1.21 | 16.4% |
| FY2026 | ₹0Cr | ₹0Cr | 19.7% | 0.50 | 1.20 | 11.8% |
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.