DuPont Decomposition
Why does EMBDL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.1% = 9.2% × 0.11 × 2.20
Latest: FY2025
Profitability
Net Margin
9.2%
-14271.2% →9.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.00x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.20x
1.02x →2.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.0 pp over 3 years. Driven by net margin improving (-14271.2% → 9.2%), asset turnover improving (0.00x → 0.11x), leverage rising (1.02x → 2.20x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-4Cr | -14271.2% | 0.00 | 1.02 | -5.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -250.9% | 0.07 | 2.12 | -37.7% |
| FY2025 | ₹0Cr | ₹0Cr | 9.2% | 0.11 | 2.20 | 2.1% |
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.