DuPont Decomposition
Why does POLYPLEX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.4% = 3.0% × 0.86 × 1.29
Latest: FY2025
Profitability
Net Margin
3.0%
1.2% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.23x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
2.12x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.8 pp over 3 years. Driven by net margin improving (1.2% → 3.0%), asset turnover improving (0.23x → 0.86x), leverage falling (2.12x → 1.29x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 0.23 | 2.12 | 0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 0.23 | 2.12 | 0.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 0.86 | 1.29 | 3.4% |
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.