DuPont Decomposition
Why does HITECHCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.3% = 1.6% × 1.24 × 1.67
Latest: FY2025
Profitability
Net Margin
1.6%
6.4% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.24x
1.66x →1.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.67x
1.63x →1.67x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.9 pp over 4 years. Driven by net margin declining (6.4% → 1.6%), asset turnover declining (1.66x → 1.24x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.4% | 1.66 | 1.63 | 17.2% |
| FY2023 | ₹0Cr | ₹0Cr | 5.1% | 1.63 | 1.40 | 11.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.9% | 1.44 | 1.48 | 8.3% |
| FY2025 | ₹0Cr | ₹0Cr | 1.6% | 1.24 | 1.67 | 3.3% |
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.