DuPont Decomposition
Why does EPACK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.3% = 0.2% × 0.76 × 2.61
Latest: FY2026
Profitability
Net Margin
0.2%
1.9% →0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.84x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
8.83x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.0 pp over 5 years. Driven by net margin declining (1.9% → 0.2%), leverage falling (8.83x → 2.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 0.84 | 8.83 | 14.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.1% | 1.02 | 4.67 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 2.6% | 0.77 | 1.98 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.08 | 2.11 | 5.8% |
| FY2026 | ₹0Cr | ₹0Cr | 0.2% | 0.76 | 2.61 | 0.3% |
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.