DuPont Decomposition
Why does ZOTA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-24.8% = -19.3% × 0.67 × 1.93
Latest: FY2025
Profitability
Net Margin
-19.3%
-7.2% →-19.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.67x
0.23x →0.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.93x
1.97x →1.93x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.5 pp over 3 years. Driven by net margin declining (-7.2% → -19.2%), asset turnover improving (0.23x → 0.67x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -7.2% | 0.23 | 1.97 | -3.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -13.9% | 0.22 | 2.54 | -7.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -19.3% | 0.67 | 1.93 | -24.8% |
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.