DuPont Decomposition
Why does ZENSARTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.0% = 12.3% × 1.02 × 1.27
Latest: FY2025
Profitability
Net Margin
12.3%
9.8% →12.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
0.29x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.38x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by net margin improving (9.8% → 12.3%), asset turnover improving (0.29x → 1.02x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.8% | 0.29 | 1.38 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 14.1% | 0.26 | 1.30 | 4.9% |
| FY2025 | ₹0Cr | ₹0Cr | 12.3% | 1.02 | 1.27 | 16.0% |
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.