DuPont Decomposition

Why does PIXTRANS earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

18.9% = 19.4% × 0.80 × 1.23

Latest: FY2025

Profitability

Net Margin

19.4%

15.4% →19.4%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.80x

0.81x →0.80x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.23x

1.52x →1.23x

Assets funded by equity vs debt

Trend Analysis

ROE stable at ~19%. Driven by net margin improving (15.4% → 19.4%), leverage falling (1.52x → 1.23x).

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr15.4%0.811.5218.9%
FY20230Cr0Cr13.5%0.831.3815.5%
FY20240Cr0Cr16.9%0.771.2916.8%
FY20250Cr0Cr19.4%0.801.2318.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.

PIXTRANS DuPont Analysis — ROE 18.9% | YieldIQ