DuPont Decomposition
Why does EXIDEIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 4.8% × 0.85 × 1.53
Latest: FY2026
Profitability
Net Margin
4.8%
34.4% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.91x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.31x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 35.1 pp over 5 years. Driven by net margin declining (34.4% → 4.8%), leverage rising (1.31x → 1.53x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 34.4% | 0.91 | 1.31 | 41.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 1.01 | 1.33 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.92 | 1.41 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.81 | 1.54 | 5.7% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 0.85 | 1.53 | 6.1% |
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.