DuPont Decomposition
Why does HAVISHA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-16.7% = -29.3% × 0.19 × 2.94
Latest: FY2025
Profitability
Net Margin
-29.3%
7.9% →-29.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.18x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.94x
1.29x →2.94x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 18.5 pp over 4 years. Driven by net margin declining (7.9% → -29.2%), leverage rising (1.29x → 2.94x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.9% | 0.18 | 1.29 | 1.8% |
| FY2023 | ₹0Cr | ₹0Cr | 9.2% | 0.39 | 1.21 | 4.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -28.8% | 0.19 | 2.55 | -13.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -29.3% | 0.19 | 2.94 | -16.7% |
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.