DuPont Decomposition
Why does EMCURE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.7% = 8.7% × 0.95 × 1.77
Latest: FY2025
Profitability
Net Margin
8.7%
11.5% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.95x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.77x
2.87x →1.77x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 16.6 pp over 4 years. Driven by net margin declining (11.5% → 8.7%), leverage falling (2.87x → 1.77x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.5% | 0.95 | 2.87 | 31.3% |
| FY2023 | ₹0Cr | ₹0Cr | 9.0% | 0.89 | 2.52 | 20.1% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 0.84 | 2.50 | 16.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.95 | 1.77 | 14.7% |
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.