DuPont Decomposition
Why does DEEDEV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.5% = 5.3% × 0.51 × 1.99
Latest: FY2025
Profitability
Net Margin
5.3%
1.8% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.51x
0.54x →0.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.99x
2.05x →1.99x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 4 years. Driven by net margin improving (1.8% → 5.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 0.54 | 2.05 | 2.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.61 | 2.28 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.3% | 0.65 | 2.68 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.51 | 1.99 | 5.5% |
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.