DuPont Decomposition
Why does PYRAMID earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 4.5% × 1.60 × 1.48
Latest: FY2025
Profitability
Net Margin
4.5%
6.5% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.60x
2.18x →1.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
2.44x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 24.1 pp over 4 years. Driven by net margin declining (6.5% → 4.5%), asset turnover declining (2.18x → 1.60x), leverage falling (2.44x → 1.48x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.5% | 2.18 | 2.44 | 34.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.6% | 2.13 | 2.11 | 29.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.5% | 0.44 | 1.37 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.60 | 1.48 | 10.7% |
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.