DuPont Decomposition
Why does HBSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-13.3% = -141.8% × 0.08 × 1.18
Latest: FY2025
Profitability
Net Margin
-141.8%
220.2% →-141.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.08x
0.10x →0.08x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.03x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 35.4 pp over 4 years. Driven by net margin declining (220.2% → -141.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 220.2% | 0.10 | 1.03 | 22.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -36.4% | 0.08 | 1.03 | -3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 184.4% | 0.19 | 1.06 | 36.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -141.8% | 0.08 | 1.18 | -13.3% |
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.