DuPont Decomposition
Why does HINDCOPPER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.5% = 29.8% × 0.70 × 1.32
Latest: FY2026
Profitability
Net Margin
29.8%
20.7% →29.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.61x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.55x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 5 years. Driven by net margin improving (20.7% → 29.8%), leverage falling (1.55x → 1.32x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.7% | 0.61 | 1.55 | 19.6% |
| FY2023 | ₹0Cr | ₹0Cr | 17.7% | 0.56 | 1.43 | 14.2% |
| FY2024 | ₹0Cr | ₹0Cr | 17.3% | 0.52 | 1.43 | 12.9% |
| FY2025 | ₹0Cr | ₹0Cr | 22.5% | 0.59 | 1.32 | 17.5% |
| FY2026 | ₹0Cr | ₹0Cr | 29.8% | 0.70 | 1.32 | 27.5% |
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.