DuPont Decomposition
Why does HLEGLAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 3.6% × 0.98 × 2.59
Latest: FY2026
Profitability
Net Margin
3.6%
9.0% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
0.85x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.59x
3.00x →2.59x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 13.7 pp over 5 years. Driven by net margin declining (9.0% → 3.6%), asset turnover improving (0.85x → 0.98x), leverage falling (3.00x → 2.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.0% | 0.85 | 3.00 | 22.9% |
| FY2023 | ₹0Cr | ₹0Cr | 7.6% | 1.03 | 2.74 | 21.4% |
| FY2024 | ₹0Cr | ₹0Cr | 3.1% | 0.80 | 2.88 | 7.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.79 | 2.82 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 0.98 | 2.59 | 9.3% |
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.