DuPont Decomposition
Why does HINDOILEXP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.1% = 35.0% × 0.21 × 1.49
Latest: FY2025
Profitability
Net Margin
35.0%
60.9% →35.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.09x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.95x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by net margin declining (60.9% → 35.0%), asset turnover improving (0.09x → 0.21x), leverage falling (1.95x → 1.49x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 60.9% | 0.09 | 1.95 | 11.3% |
| FY2024 | ₹0Cr | ₹0Cr | 24.4% | 0.15 | 1.66 | 6.0% |
| FY2025 | ₹0Cr | ₹0Cr | 35.0% | 0.21 | 1.49 | 11.1% |
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.