DuPont Decomposition
Why does DBEIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 9.8% × 0.70 × 2.02
Latest: FY2025
Profitability
Net Margin
9.8%
4.9% →9.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
1.13x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.02x
3.80x →2.02x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.1 pp over 4 years. Driven by net margin improving (4.9% → 9.8%), asset turnover declining (1.13x → 0.70x), leverage falling (3.80x → 2.02x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 1.13 | 3.80 | 20.9% |
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 0.96 | 4.47 | 21.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.8% | 0.92 | 3.49 | 37.7% |
| FY2025 | ₹0Cr | ₹0Cr | 9.8% | 0.70 | 2.02 | 13.8% |
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.