DuPont Decomposition
Why does EXPLEOSOL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.2% = 10.1% × 1.23 × 1.31
Latest: FY2025
Profitability
Net Margin
10.1%
12.6% →10.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.23x
0.32x →1.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.38x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.8 pp over 3 years. Driven by net margin declining (12.6% → 10.1%), asset turnover improving (0.32x → 1.23x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 12.6% | 0.32 | 1.38 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.33 | 1.25 | 2.6% |
| FY2025 | ₹0Cr | ₹0Cr | 10.1% | 1.23 | 1.31 | 16.2% |
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.