DuPont Decomposition
Why does HAVELLS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.9% = 7.6% × 1.51 × 1.56
Latest: FY2026
Profitability
Net Margin
7.6%
6.4% →7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
1.51x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.56x
1.68x →1.56x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.7 pp over 4 years. Driven by net margin improving (6.4% → 7.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.4% | 1.51 | 1.68 | 16.2% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 1.49 | 1.67 | 17.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 1.56 | 1.66 | 17.7% |
| FY2026 | ₹0Cr | ₹0Cr | 7.6% | 1.51 | 1.56 | 17.9% |
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.