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
61.1% = 35.3% × 0.92 × 1.87
Latest: FY2026
Profitability
Net Margin
35.3%
31.6% →35.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
0.94x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
2.74x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.1 pp over 4 years. Driven by net margin improving (31.6% → 35.3%), leverage falling (2.74x → 1.87x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 31.6% | 0.94 | 2.74 | 81.3% |
| FY2024 | ₹0Cr | ₹0Cr | 27.6% | 0.83 | 2.23 | 51.1% |
| FY2025 | ₹0Cr | ₹0Cr | 31.3% | 0.96 | 2.59 | 77.7% |
| FY2026 | ₹0Cr | ₹0Cr | 35.3% | 0.92 | 1.87 | 61.1% |
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.