DuPont Decomposition
Why does ESABINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
48.6% = 12.8% × 2.11 × 1.79
Latest: FY2025
Profitability
Net Margin
12.8%
9.5% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.11x
2.04x →2.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.79x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.0 pp over 4 years. Driven by net margin improving (9.5% → 12.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.5% | 2.04 | 1.79 | 34.5% |
| FY2023 | ₹0Cr | ₹0Cr | 12.5% | 2.29 | 1.82 | 52.1% |
| FY2024 | ₹0Cr | ₹0Cr | 13.2% | 2.25 | 1.80 | 53.3% |
| FY2025 | ₹0Cr | ₹0Cr | 12.8% | 2.11 | 1.79 | 48.6% |
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.