DuPont Decomposition
Why does HATSUN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.3% = 3.6% × 2.24 × 2.28
Latest: FY2026
Profitability
Net Margin
3.6%
3.4% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.24x
1.79x →2.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.28x
3.19x →2.28x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.3 pp over 5 years. Driven by asset turnover improving (1.79x → 2.24x), leverage falling (3.19x → 2.28x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.4% | 1.79 | 3.19 | 19.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 1.95 | 2.57 | 11.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 1.68 | 3.01 | 17.0% |
| FY2025 | ₹0Cr | ₹0Cr | 3.2% | 1.79 | 2.83 | 16.2% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 2.24 | 2.28 | 18.3% |
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.