DuPont Decomposition
Why does PITTIENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.9% = 6.2% × 0.89 × 2.17
Latest: FY2026
Profitability
Net Margin
6.2%
5.5% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.99x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.17x
3.37x →2.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.3 pp over 5 years. Driven by leverage falling (3.37x → 2.17x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 0.99 | 3.37 | 18.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 1.12 | 2.93 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.3% | 0.89 | 2.94 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.2% | 0.85 | 2.23 | 13.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.2% | 0.89 | 2.17 | 11.9% |
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.