DuPont Decomposition
Why does PRITI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.6% = 6.2% × 0.98 × 1.09
Latest: FY2025
Profitability
Net Margin
6.2%
7.6% →6.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
2.01x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.30x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.2 pp over 4 years. Driven by net margin declining (7.6% → 6.2%), asset turnover declining (2.01x → 0.98x), leverage falling (1.30x → 1.09x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.6% | 2.01 | 1.30 | 19.9% |
| FY2023 | ₹0Cr | ₹0Cr | 8.6% | 1.45 | 1.25 | 15.6% |
| FY2024 | ₹0Cr | ₹0Cr | 10.6% | 1.18 | 1.13 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 6.2% | 0.98 | 1.09 | 6.6% |
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.