DuPont Decomposition
Why does PRAENG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.7% = -48.2% × 0.07 × 1.73
Latest: FY2025
Profitability
Net Margin
-48.2%
-2.6% →-48.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.08x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.73x
2.03x →1.73x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.3 pp over 4 years. Driven by net margin declining (-2.6% → -48.2%), leverage falling (2.03x → 1.73x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.6% | 0.08 | 2.03 | -0.4% |
| FY2023 | ₹0Cr | ₹-0Cr | -30.6% | 0.03 | 1.69 | -1.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -67.8% | 0.06 | 1.74 | -7.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -48.2% | 0.07 | 1.73 | -5.7% |
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.