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
6.6% = 5.3% × 1.01 × 1.22
Latest: FY2025
Profitability
Net Margin
5.3%
3.9% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.76x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.27x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 4 years. Driven by net margin improving (3.9% → 5.3%), asset turnover improving (0.76x → 1.01x).
Historical Decomposition
Last 4 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 | 5.3% | 1.01 | 1.22 | 6.6% |
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.