DuPont Decomposition
Why does PNBHOUSING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.5% = 65.4% × 0.04 × 4.89
Latest: FY2025
Profitability
Net Margin
65.4%
17.1% →65.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.04x
0.02x →0.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.89x
6.07x →4.89x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.9 pp over 3 years. Driven by net margin improving (17.1% → 65.4%), leverage falling (6.07x → 4.89x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 17.1% | 0.02 | 6.07 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 24.3% | 0.02 | 4.84 | 2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 65.4% | 0.04 | 4.89 | 11.5% |
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.