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
0.2% = 11.7% × 0.01 × 1.23
Latest: FY2026
Profitability
Net Margin
11.7%
78.2% →11.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.02x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.14x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.6 pp over 5 years. Driven by net margin declining (78.2% → 11.7%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 78.2% | 0.02 | 1.14 | 1.8% |
| FY2023 | ₹0Cr | ₹0Cr | 88.3% | 0.02 | 1.11 | 2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 58.1% | 0.02 | 1.13 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 32.8% | 0.02 | 1.21 | 0.6% |
| FY2026 | ₹0Cr | ₹0Cr | 11.7% | 0.01 | 1.23 | 0.2% |
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.