DuPont Decomposition
Why does DCAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.1% = 0.1% × 0.26 × 1.71
Latest: FY2025
Profitability
Net Margin
0.1%
-1.2% →0.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.26x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.71x
1.63x →1.71x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~0%. Driven by net margin improving (-1.2% → 0.1%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -1.2% | 0.26 | 1.63 | -0.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.9% | 0.27 | 1.70 | -2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 0.1% | 0.26 | 1.71 | 0.1% |
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.