DuPont Decomposition
Why does PNCINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.6% = 13.9% × 0.32 × 3.02
Latest: FY2025
Profitability
Net Margin
13.9%
6.3% →13.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.18x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.02x
2.95x →3.02x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.2 pp over 3 years. Driven by net margin improving (6.3% → 13.9%), asset turnover improving (0.18x → 0.32x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.3% | 0.18 | 2.95 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 15.2% | 0.17 | 3.01 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 13.9% | 0.32 | 3.02 | 13.6% |
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.