DuPont Decomposition
Why does HINDZINC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
77.7% = 31.3% × 0.96 × 2.59
Latest: FY2025
Profitability
Net Margin
31.3%
31.3% →31.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
0.23x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.59x
2.74x →2.59x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 57.7 pp over 3 years. Driven by asset turnover improving (0.23x → 0.96x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 31.3% | 0.23 | 2.74 | 20.0% |
| FY2024 | ₹0Cr | ₹0Cr | 27.1% | 0.22 | 2.23 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 31.3% | 0.96 | 2.59 | 77.7% |
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.