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
5.3% = 2.4% × 1.31 × 1.72
Latest: FY2026
Profitability
Net Margin
2.4%
6.4% →2.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
1.66x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
1.63x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.9 pp over 5 years. Driven by net margin declining (6.4% → 2.4%), asset turnover declining (1.66x → 1.31x).
Historical Decomposition
Last 5 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% | 1.25 | 1.67 | 3.3% |
| FY2026 | ₹0Cr | ₹0Cr | 2.4% | 1.31 | 1.72 | 5.3% |
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.