DuPont Decomposition
Why does DABUR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.8% = 14.3% × 0.76 × 1.45
Latest: FY2025
Profitability
Net Margin
14.3%
10.9% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.76x
0.20x →0.76x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
1.52x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.5 pp over 3 years. Driven by net margin improving (10.9% → 14.3%), asset turnover improving (0.20x → 0.76x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.9% | 0.20 | 1.52 | 3.3% |
| FY2024 | ₹0Cr | ₹0Cr | 12.1% | 0.19 | 1.53 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.76 | 1.45 | 15.8% |
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.