DuPont Decomposition
Why does HIMATSEIDE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.9% = 1.2% × 0.85 × 2.76
Latest: FY2026
Profitability
Net Margin
1.2%
4.9% →1.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
0.51x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.76x
3.84x →2.76x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.7 pp over 5 years. Driven by net margin declining (4.9% → 1.2%), asset turnover improving (0.51x → 0.85x), leverage falling (3.84x → 2.76x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 0.51 | 3.84 | 9.6% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.6% | 0.45 | 3.82 | -4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 4.4% | 0.44 | 3.72 | 7.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.4% | 0.98 | 2.78 | 3.7% |
| FY2026 | ₹0Cr | ₹0Cr | 1.2% | 0.85 | 2.76 | 2.9% |
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.