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
5.7% = 4.6% × 0.80 × 1.54
Latest: FY2025
Profitability
Net Margin
4.6%
4.9% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.25x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
1.33x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.1 pp over 3 years. Driven by asset turnover improving (0.25x → 0.80x), leverage rising (1.33x → 1.54x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 0.25 | 1.33 | 1.6% |
| FY2024 | ₹0Cr | ₹0Cr | 4.5% | 0.23 | 1.41 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.80 | 1.54 | 5.7% |
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.