DuPont Decomposition
Why does PRIVISCL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.2% = 12.8% × 0.81 × 2.24
Latest: FY2026
Profitability
Net Margin
12.8%
6.9% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.64x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.24x
2.68x →2.24x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.2 pp over 5 years. Driven by net margin improving (6.9% → 12.8%), asset turnover improving (0.64x → 0.81x), leverage falling (2.68x → 2.24x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.9% | 0.64 | 2.68 | 12.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 0.67 | 2.88 | 2.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.4% | 0.75 | 2.53 | 10.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.75 | 2.53 | 16.9% |
| FY2026 | ₹0Cr | ₹0Cr | 12.8% | 0.81 | 2.24 | 23.2% |
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.