DuPont Decomposition
Why does PODDARHOUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-54.1% = -76.4% × 0.08 × 8.78
Latest: FY2024
Profitability
Net Margin
-76.4%
-180.3% →-76.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.04x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
8.78x
6.61x →8.78x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.6 pp over 2 years. Driven by net margin improving (-180.3% → -76.4%), leverage rising (6.61x → 8.78x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -180.3% | 0.04 | 6.61 | -43.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -76.4% | 0.08 | 8.78 | -54.1% |
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.