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
1.1% = 0.6% × 0.79 × 2.10
Latest: FY2026
Profitability
Net Margin
0.6%
8.6% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.79x
0.91x →0.79x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.10x
2.18x →2.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.1 pp over 5 years. Driven by net margin declining (8.6% → 0.6%), asset turnover declining (0.91x → 0.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.6% | 0.91 | 2.18 | 17.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.6% | 1.03 | 2.12 | 10.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.6% | 0.85 | 2.12 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 0.86 | 2.13 | 5.6% |
| FY2026 | ₹0Cr | ₹0Cr | 0.6% | 0.79 | 2.10 | 1.1% |
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.