DuPont Decomposition
Why does FUSION earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-74.5% = -57.5% × 0.26 × 5.05
Latest: FY2025
Profitability
Net Margin
-57.5%
2.1% →-57.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.14x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.05x
5.45x →5.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 76.1 pp over 4 years. Driven by net margin declining (2.1% → -57.5%), asset turnover improving (0.14x → 0.26x), leverage falling (5.45x → 5.05x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.1% | 0.14 | 5.45 | 1.6% |
| FY2023 | ₹0Cr | ₹0Cr | 22.9% | 0.05 | 4.03 | 4.9% |
| FY2024 | ₹0Cr | ₹0Cr | 20.5% | 0.05 | 4.13 | 4.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -57.5% | 0.26 | 5.05 | -74.5% |
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.