DuPont Decomposition
Why does PLAZACABLE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.4% = 1.3% × 1.33 × 1.34
Latest: FY2025
Profitability
Net Margin
1.3%
3.4% →1.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.33x
1.70x →1.33x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
2.29x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.7 pp over 4 years. Driven by net margin declining (3.4% → 1.3%), asset turnover declining (1.70x → 1.33x), leverage falling (2.29x → 1.34x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 1.70 | 2.29 | 13.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.0% | 1.63 | 2.11 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 1.15 | 1.45 | 3.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.3% | 1.33 | 1.34 | 2.4% |
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.