DuPont Decomposition
Why does HINDWAREAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-5.4% = -1.6% × 1.02 × 3.33
Latest: FY2026
Profitability
Net Margin
-1.6%
8.9% →-1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
1.05x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.33x
4.08x →3.33x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 43.7 pp over 5 years. Driven by net margin declining (8.9% → -1.6%), leverage falling (4.08x → 3.33x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.9% | 1.05 | 4.08 | 38.3% |
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 1.22 | 4.00 | 9.9% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 1.12 | 4.05 | 4.3% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.7% | 1.00 | 3.25 | -8.8% |
| FY2026 | ₹0Cr | ₹-0Cr | -1.6% | 1.02 | 3.33 | -5.4% |
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.