DuPont Decomposition
Why does ELIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.5% = 2.5% × 1.58 × 1.36
Latest: FY2025
Profitability
Net Margin
2.5%
3.7% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.58x
2.00x →1.58x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.76x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.4 pp over 4 years. Driven by net margin declining (3.7% → 2.5%), asset turnover declining (2.00x → 1.58x), leverage falling (1.76x → 1.36x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.7% | 2.00 | 1.76 | 12.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 1.43 | 1.49 | 5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.4% | 1.52 | 1.33 | 2.8% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.58 | 1.36 | 5.5% |
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.