DuPont Decomposition
Why does PWL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-13.9% = -7.5% × 0.69 × 2.68
Latest: FY2025
Profitability
Net Margin
-7.5%
-7.5% →-7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.69x
0.69x →0.69x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.68x
2.68x →2.68x
Assets funded by equity vs debt
Historical Decomposition
Last 1 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2025 | ₹0Cr | ₹-0Cr | -7.5% | 0.69 | 2.68 | -13.9% |
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.