DuPont Decomposition
Why does HARRMALAYA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.3% = 5.4% × 1.07 × 2.81
Latest: FY2026
Profitability
Net Margin
5.4%
5.2% →5.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.07x
1.07x →1.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.81x
3.04x →2.81x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~16%. Driven by leverage falling (3.04x → 2.81x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.2% | 1.07 | 3.04 | 16.7% |
| FY2023 | ₹0Cr | ₹0Cr | 3.9% | 1.03 | 2.85 | 11.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.6% | 0.99 | 3.22 | -5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 1.09 | 3.06 | 9.7% |
| FY2026 | ₹0Cr | ₹0Cr | 5.4% | 1.07 | 2.81 | 16.3% |
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.