DuPont Decomposition
Why does ZENTEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.1% = 28.8% × 0.48 × 1.18
Latest: FY2025
Profitability
Net Margin
28.8%
24.4% →28.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.20x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.50x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.8 pp over 3 years. Driven by net margin improving (24.4% → 28.8%), asset turnover improving (0.20x → 0.48x), leverage falling (1.50x → 1.18x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 24.4% | 0.20 | 1.50 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 26.6% | 0.19 | 1.67 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 28.8% | 0.48 | 1.18 | 16.1% |
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.