DuPont Decomposition
Why does ZFCVINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.0% = 12.6% × 0.92 × 1.20
Latest: FY2026
Profitability
Net Margin
12.6%
5.6% →12.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.96x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.25x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.3 pp over 5 years. Driven by net margin improving (5.6% → 12.6%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.6% | 0.96 | 1.25 | 6.7% |
| FY2023 | ₹0Cr | ₹0Cr | 9.3% | 1.13 | 1.25 | 13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 10.7% | 1.12 | 1.21 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 12.1% | 1.00 | 1.18 | 14.3% |
| FY2026 | ₹0Cr | ₹0Cr | 12.6% | 0.92 | 1.20 | 14.0% |
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.