DuPont Decomposition
Why does HBLENGINE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.7% = 14.2% × 0.99 × 1.34
Latest: FY2025
Profitability
Net Margin
14.2%
7.3% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.05x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.36x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.3 pp over 3 years. Driven by net margin improving (7.3% → 14.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.05 | 1.36 | 10.4% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 1.34 | 1.36 | 23.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.2% | 0.99 | 1.34 | 18.7% |
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.