DuPont Decomposition
Why does EMAMIPAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.8% = 1.4% × 1.06 × 2.68
Latest: FY2025
Profitability
Net Margin
1.4%
5.9% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.06x
1.09x →1.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.68x
2.72x →2.68x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.7 pp over 4 years. Driven by net margin declining (5.9% → 1.4%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 1.09 | 2.72 | 17.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.9% | 1.20 | 2.83 | 9.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.16 | 2.21 | 10.9% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 1.06 | 2.68 | 3.8% |
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.