DuPont Decomposition
Why does PROTEAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 11.1% × 0.64 × 1.31
Latest: FY2025
Profitability
Net Margin
11.1%
20.9% →11.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.64x
0.70x →0.64x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.25x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.0 pp over 4 years. Driven by net margin declining (20.9% → 11.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.9% | 0.70 | 1.25 | 18.3% |
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 0.66 | 1.29 | 12.5% |
| FY2024 | ₹0Cr | ₹0Cr | 11.1% | 0.74 | 1.28 | 10.5% |
| FY2025 | ₹0Cr | ₹0Cr | 11.1% | 0.64 | 1.31 | 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.