DuPont Decomposition
Why does PRABHA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.3% = -36.6% × 0.01 × 1.45
Latest: FY2025
Profitability
Net Margin
-36.6%
11.3% →-36.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.06x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.33x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 3 years. Driven by net margin declining (11.2% → -36.6%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 0.06 | 1.33 | 0.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -34.7% | 0.00 | 1.36 | -0.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -36.6% | 0.01 | 1.45 | -0.3% |
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.