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
16.7% = 8.9% × 0.75 × 2.50
Latest: FY2025
Profitability
Net Margin
8.9%
-3.7% →8.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
0.17x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
2.88x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.5 pp over 3 years. Driven by net margin improving (-3.7% → 8.9%), asset turnover improving (0.17x → 0.75x), leverage falling (2.88x → 2.50x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -3.7% | 0.17 | 2.88 | -1.8% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 0.22 | 2.38 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 8.9% | 0.75 | 2.50 | 16.7% |
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.