DuPont Decomposition
Why does DCXINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.8% = 3.6% × 0.57 × 1.38
Latest: FY2025
Profitability
Net Margin
3.6%
6.0% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.57x
1.17x →0.57x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
8.02x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 53.0 pp over 4 years. Driven by net margin declining (6.0% → 3.6%), asset turnover declining (1.17x → 0.57x), leverage falling (8.02x → 1.38x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.0% | 1.17 | 8.02 | 55.8% |
| FY2023 | ₹0Cr | ₹0Cr | 5.7% | 1.03 | 2.15 | 12.7% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 0.77 | 1.64 | 6.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.6% | 0.57 | 1.38 | 2.8% |
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.