DuPont Decomposition
Why does PREMIERENE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
35.0% = 19.3% × 0.72 × 2.52
Latest: FY2026
Profitability
Net Margin
19.3%
-1.9% →19.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.55x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.52x
3.40x →2.52x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 38.7 pp over 5 years. Driven by net margin improving (-1.9% → 19.3%), asset turnover improving (0.55x → 0.72x), leverage falling (3.40x → 2.52x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -1.9% | 0.55 | 3.40 | -3.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -0.9% | 0.68 | 5.13 | -3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 0.88 | 5.49 | 35.8% |
| FY2025 | ₹0Cr | ₹0Cr | 14.4% | 0.95 | 2.42 | 33.2% |
| FY2026 | ₹0Cr | ₹0Cr | 19.3% | 0.72 | 2.52 | 35.0% |
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.