DuPont Decomposition
Why does PILANIINVS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.6% = 32.7% × 0.02 × 1.21
Latest: FY2025
Profitability
Net Margin
32.7%
49.7% →32.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.00x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.12x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin declining (49.7% → 32.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 49.7% | 0.00 | 1.12 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 49.7% | 0.00 | 1.13 | 0.2% |
| FY2025 | ₹0Cr | ₹0Cr | 32.7% | 0.02 | 1.21 | 0.6% |
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.