DuPont Decomposition

Why does DELPHIFX earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

0.9% = 0.1% × 5.56 × 1.38

Latest: FY2025

Profitability

Net Margin

0.1%

0.5% →0.1%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

5.56x

4.98x →5.56x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.38x

1.57x →1.38x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 3.3 pp over 4 years. Driven by asset turnover improving (4.98x → 5.56x).

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr0.5%4.981.574.1%
FY20230Cr0Cr0.6%8.541.487.3%
FY20240Cr0Cr0.5%8.971.446.8%
FY20250Cr0Cr0.1%5.561.380.9%

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)

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.

DELPHIFX DuPont Analysis — ROE 0.9% | YieldIQ