DuPont Decomposition
Why does HARIOMPIPE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.8% = 4.5% × 1.13 × 2.09
Latest: FY2025
Profitability
Net Margin
4.5%
7.2% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
0.91x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.09x
1.89x →2.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.5 pp over 3 years. Driven by net margin declining (7.2% → 4.5%), asset turnover improving (0.91x → 1.13x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.2% | 0.91 | 1.89 | 12.3% |
| FY2024 | ₹0Cr | ₹0Cr | 4.9% | 1.31 | 1.90 | 12.2% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.13 | 2.09 | 10.8% |
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.