DuPont Decomposition
Why does ECLERX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.6% = 17.1% × 1.11 × 1.44
Latest: FY2026
Profitability
Net Margin
17.1%
19.3% →17.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
1.04x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.32x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~28%. Driven by net margin declining (19.3% → 17.1%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.3% | 1.04 | 1.32 | 26.6% |
| FY2023 | ₹0Cr | ₹0Cr | 18.5% | 1.16 | 1.33 | 28.5% |
| FY2024 | ₹0Cr | ₹0Cr | 17.5% | 1.00 | 1.30 | 22.8% |
| FY2025 | ₹0Cr | ₹0Cr | 16.1% | 1.07 | 1.36 | 23.5% |
| FY2026 | ₹0Cr | ₹0Cr | 17.1% | 1.11 | 1.44 | 27.6% |
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.