DuPont Decomposition
Why does PKTEA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.1% = 0.6% × 0.16 × 1.28
Latest: FY2025
Profitability
Net Margin
0.6%
1.5% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.13x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.33x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~0%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 0.13 | 1.33 | 0.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.5% | 0.21 | 1.19 | -1.9% |
| FY2024 | ₹0Cr | ₹0Cr | 13.7% | 0.17 | 1.19 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 0.16 | 1.28 | 0.1% |
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.