DuPont Decomposition
Why does FABTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.8% = 14.2% × 0.77 × 2.46
Latest: FY2025
Profitability
Net Margin
14.2%
11.2% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.91x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.46x
2.40x →2.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 3 years. Driven by net margin improving (11.2% → 14.2%), asset turnover declining (0.91x → 0.77x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 11.2% | 0.91 | 2.40 | 24.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.0% | 0.84 | 2.04 | 20.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.77 | 2.46 | 26.8% |
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.