DuPont Decomposition
Why does PNGJL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.9% = 3.8% × 2.16 × 2.53
Latest: FY2026
Profitability
Net Margin
3.8%
2.3% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.16x
2.30x →2.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.53x
3.59x →2.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.2 pp over 5 years. Driven by net margin improving (2.2% → 3.8%), asset turnover declining (2.30x → 2.16x), leverage falling (3.59x → 2.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.3% | 2.30 | 3.59 | 18.6% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 4.24 | 2.84 | 19.9% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 4.17 | 2.74 | 29.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.8% | 2.45 | 2.02 | 14.1% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 2.16 | 2.53 | 20.9% |
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.