DuPont Decomposition
Why does NAHARSPING earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 0.4% × 1.16 × 1.85
Latest: FY2025
Profitability
Net Margin
0.4%
4.0% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.16x
1.09x →1.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
1.62x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.3 pp over 3 years. Driven by net margin declining (4.0% → 0.4%), leverage rising (1.62x → 1.85x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.0% | 1.09 | 1.62 | 7.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.0% | 1.02 | 1.95 | -0.0% |
| FY2025 | ₹0Cr | ₹0Cr | 0.4% | 1.16 | 1.85 | 0.8% |
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.