DuPont Decomposition
Why does EPIGRAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.8% = 14.2% × 0.80 × 1.66
Latest: FY2025
Profitability
Net Margin
14.2%
13.7% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.23x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.66x
2.28x →1.66x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.6 pp over 3 years. Driven by asset turnover improving (0.23x → 0.80x), leverage falling (2.28x → 1.66x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.23 | 2.28 | 7.2% |
| FY2024 | ₹0Cr | ₹0Cr | 14.7% | 0.19 | 2.23 | 6.2% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.80 | 1.66 | 18.8% |
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.