DuPont Decomposition
Why does EXCELINDUS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.4% = 8.8% × 0.51 × 1.21
Latest: FY2025
Profitability
Net Margin
8.8%
7.3% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.73x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.21x
1.20x →1.21x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 3 years. Driven by net margin improving (7.3% → 8.8%), asset turnover declining (0.73x → 0.51x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 0.73 | 1.20 | 6.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.1% | 0.46 | 1.26 | 1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 0.51 | 1.21 | 5.4% |
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.