DuPont Decomposition
Why does DELTACORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.8% = 12.4% × 0.27 × 1.14
Latest: FY2026
Profitability
Net Margin
12.4%
27.1% →12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
0.38x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.14x
1.15x →1.14x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.0 pp over 4 years. Driven by net margin declining (27.1% → 12.4%), asset turnover declining (0.38x → 0.27x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 27.1% | 0.38 | 1.15 | 11.8% |
| FY2024 | ₹0Cr | ₹0Cr | 28.8% | 0.30 | 1.14 | 9.7% |
| FY2025 | ₹0Cr | ₹0Cr | 34.1% | 0.25 | 1.11 | 9.3% |
| FY2026 | ₹0Cr | ₹0Cr | 12.4% | 0.27 | 1.14 | 3.8% |
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.