DuPont Decomposition
Why does PTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.5% = 71.8% × 0.06 × 1.26
Latest: FY2026
Profitability
Net Margin
71.8%
52.2% →71.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.08x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.26x
1.44x →1.26x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~5%. Driven by net margin improving (52.2% → 71.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 52.2% | 0.08 | 1.44 | 5.7% |
| FY2023 | ₹0Cr | ₹0Cr | 36.2% | 0.07 | 1.38 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 36.6% | 0.06 | 1.33 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 56.4% | 0.06 | 1.26 | 4.3% |
| FY2026 | ₹0Cr | ₹0Cr | 71.8% | 0.06 | 1.26 | 5.5% |
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.