DuPont Decomposition
Why does EVERESTIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-0.6% = -0.2% × 1.30 × 2.20
Latest: FY2025
Profitability
Net Margin
-0.2%
3.2% →-0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.29x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.20x
1.95x →2.20x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.7 pp over 4 years. Driven by net margin declining (3.2% → -0.2%), leverage rising (1.95x → 2.20x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.2% | 1.29 | 1.95 | 8.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.6% | 1.44 | 1.95 | 7.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 1.30 | 2.01 | 3.0% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.2% | 1.30 | 2.20 | -0.6% |
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.