DuPont Decomposition
Why does DALMIASUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.0% = 10.3% × 0.77 × 1.50
Latest: FY2025
Profitability
Net Margin
10.3%
7.7% →10.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.85x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
1.41x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 3 years. Driven by net margin improving (7.7% → 10.3%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.85 | 1.41 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 9.4% | 0.56 | 1.76 | 9.3% |
| FY2025 | ₹0Cr | ₹0Cr | 10.3% | 0.77 | 1.50 | 12.0% |
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.