DuPont Decomposition
Why does PILITA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.3% = 4.2% × 0.98 × 1.32
Latest: FY2026
Profitability
Net Margin
4.2%
3.9% →4.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.76x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.27x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 5 years. Driven by asset turnover improving (0.76x → 0.98x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.9% | 0.76 | 1.27 | 3.8% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 0.94 | 1.25 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.9% | 0.97 | 1.31 | 6.2% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 1.03 | 1.22 | 6.6% |
| FY2026 | ₹0Cr | ₹0Cr | 4.2% | 0.98 | 1.32 | 5.3% |
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.