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
12.2% = 15.5% × 0.39 × 2.03
Latest: FY2026
Profitability
Net Margin
15.5%
8.5% →15.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.64x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.03x
2.93x →2.03x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.8 pp over 5 years. Driven by net margin improving (8.5% → 15.5%), asset turnover declining (0.64x → 0.39x), leverage falling (2.93x → 2.03x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.5% | 0.64 | 2.93 | 16.0% |
| FY2023 | ₹0Cr | ₹0Cr | 8.9% | 0.59 | 2.95 | 15.4% |
| FY2024 | ₹0Cr | ₹0Cr | 11.5% | 0.51 | 3.01 | 17.5% |
| FY2025 | ₹0Cr | ₹0Cr | 12.1% | 0.37 | 3.02 | 13.6% |
| FY2026 | ₹0Cr | ₹0Cr | 15.5% | 0.39 | 2.03 | 12.2% |
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.