DuPont Decomposition
Why does PRAKASH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 9.6% × 0.73 × 1.32
Latest: FY2026
Profitability
Net Margin
9.6%
4.3% →9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
1.00x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.39x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.3 pp over 5 years. Driven by net margin improving (4.3% → 9.6%), asset turnover declining (1.00x → 0.73x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 1.00 | 1.39 | 6.0% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 0.81 | 1.44 | 6.5% |
| FY2024 | ₹0Cr | ₹0Cr | 9.5% | 0.91 | 1.34 | 11.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 0.90 | 1.35 | 10.7% |
| FY2026 | ₹0Cr | ₹0Cr | 9.6% | 0.73 | 1.32 | 9.3% |
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.