DuPont Decomposition
Why does PVP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-3.0% = -24.8% × 0.07 × 1.69
Latest: FY2025
Profitability
Net Margin
-24.8%
81.8% →-24.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.52x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.69x
2.29x →1.69x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 100.1 pp over 3 years. Driven by net margin declining (81.8% → -24.8%), asset turnover declining (0.52x → 0.07x), leverage falling (2.29x → 1.69x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 81.8% | 0.52 | 2.29 | 97.1% |
| FY2024 | ₹0Cr | ₹0Cr | 790.9% | 0.02 | 1.65 | 29.2% |
| FY2025 | ₹0Cr | ₹-0Cr | -24.8% | 0.07 | 1.69 | -3.0% |
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.