DuPont Decomposition
Why does ENERGYDEV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2451.1% = -296.9% × 0.17 × 48.27
Latest: FY2025
Profitability
Net Margin
-296.9%
22.2% →-296.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.17x
0.12x →0.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
48.27x
3.56x →48.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2460.7 pp over 4 years. Driven by net margin declining (22.2% → -296.9%), leverage rising (3.56x → 48.27x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.2% | 0.12 | 3.56 | 9.6% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 0.11 | 3.44 | 4.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -7.2% | 0.09 | 3.46 | -2.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -296.9% | 0.17 | 48.27 | -2451.1% |
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.