DuPont Decomposition
Why does ELPROINTL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.3% = 16.5% × 0.15 × 1.78
Latest: FY2026
Profitability
Net Margin
16.5%
1459.2% →16.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.15x
0.05x →0.15x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.78x
1.12x →1.78x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 81.5 pp over 5 years. Driven by net margin declining (1459.2% → 16.5%), leverage rising (1.12x → 1.78x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1459.2% | 0.05 | 1.12 | 85.8% |
| FY2023 | ₹0Cr | ₹0Cr | 43.0% | 0.07 | 1.20 | 3.8% |
| FY2024 | ₹0Cr | ₹0Cr | 45.5% | 0.09 | 1.32 | 5.3% |
| FY2025 | ₹0Cr | ₹0Cr | 16.9% | 0.11 | 1.67 | 3.3% |
| FY2026 | ₹0Cr | ₹0Cr | 16.5% | 0.15 | 1.78 | 4.3% |
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.