DuPont Decomposition
Why does PIONEEREMB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 1.2% × 1.16 × 2.07
Latest: FY2025
Profitability
Net Margin
1.2%
3.8% →1.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
1.46x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.07x
1.63x →2.07x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 4 years. Driven by net margin declining (3.8% → 1.2%), asset turnover declining (1.46x → 1.16x), leverage rising (1.63x → 2.07x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.8% | 1.46 | 1.63 | 9.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 1.00 | 2.27 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.1% | 1.01 | 2.28 | 2.5% |
| FY2025 | ₹0Cr | ₹0Cr | 1.2% | 1.16 | 2.07 | 2.9% |
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.