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
9.3% = 34.1% × 0.25 × 1.11
Latest: FY2025
Profitability
Net Margin
34.1%
22.6% →34.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.25x
0.09x →0.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.15x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.0 pp over 3 years. Driven by net margin improving (22.6% → 34.1%), asset turnover improving (0.09x → 0.25x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.6% | 0.09 | 1.15 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 37.2% | 0.07 | 1.14 | 2.9% |
| FY2025 | ₹0Cr | ₹0Cr | 34.1% | 0.25 | 1.11 | 9.3% |
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.