DuPont Decomposition
Why does HLVLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.6% = 12.8% × 0.32 × 1.35
Latest: FY2025
Profitability
Net Margin
12.8%
6.2% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.32x
0.31x →0.32x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.35x
1.35x →1.35x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 3 years. Driven by net margin improving (6.2% → 12.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 0.31 | 1.35 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 0.34 | 1.31 | 5.4% |
| FY2025 | ₹0Cr | ₹0Cr | 12.8% | 0.32 | 1.35 | 5.6% |
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.