DuPont Decomposition
Why does DEEPINDS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.7% = -15.6% × 0.24 × 1.25
Latest: FY2025
Profitability
Net Margin
-15.6%
69.8% →-15.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.24x
0.07x →0.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.15x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.9 pp over 3 years. Driven by net margin declining (69.8% → -15.6%), asset turnover improving (0.07x → 0.24x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 69.8% | 0.07 | 1.15 | 5.2% |
| FY2024 | ₹0Cr | ₹0Cr | 30.6% | 0.06 | 1.32 | 2.5% |
| FY2025 | ₹0Cr | ₹-0Cr | -15.6% | 0.24 | 1.25 | -4.7% |
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.