DuPont Decomposition
Why does HALDER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 2.5% × 1.43 × 3.87
Latest: FY2025
Profitability
Net Margin
2.5%
2.6% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.43x
3.28x →1.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.87x
5.34x →3.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 31.2 pp over 4 years. Driven by asset turnover declining (3.28x → 1.43x), leverage falling (5.34x → 3.87x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 3.28 | 5.34 | 44.9% |
| FY2023 | ₹0Cr | ₹0Cr | 1.6% | 1.02 | 6.76 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 1.45 | 3.28 | 8.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.43 | 3.87 | 13.8% |
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.