DuPont Decomposition
Why does DATAPATTNS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.7% = 31.3% × 0.39 × 1.22
Latest: FY2025
Profitability
Net Margin
31.3%
29.9% →31.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.39x
0.13x →0.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.22x
1.23x →1.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.0 pp over 3 years. Driven by net margin improving (29.9% → 31.3%), asset turnover improving (0.13x → 0.39x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 29.9% | 0.13 | 1.23 | 4.7% |
| FY2024 | ₹0Cr | ₹0Cr | 39.0% | 0.11 | 1.28 | 5.4% |
| FY2025 | ₹0Cr | ₹0Cr | 31.3% | 0.39 | 1.22 | 14.7% |
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.