DuPont Decomposition
Why does PVSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.6% = -0.2% × 2.80 × 2.98
Latest: FY2025
Profitability
Net Margin
-0.2%
1.0% →-0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.80x
2.61x →2.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.98x
4.51x →2.98x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.7 pp over 4 years. Driven by net margin declining (1.0% → -0.2%), asset turnover improving (2.61x → 2.80x), leverage falling (4.51x → 2.98x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.0% | 2.61 | 4.51 | 12.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 3.11 | 4.38 | 18.7% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 2.75 | 3.00 | 11.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.2% | 2.80 | 2.98 | -1.6% |
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.