DuPont Decomposition
Why does DELTAMAGNT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-82.8% = -19.9% × 0.90 × 4.63
Latest: FY2025
Profitability
Net Margin
-19.9%
22.1% →-19.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.90x
0.67x →0.90x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.63x
2.35x →4.63x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 117.7 pp over 4 years. Driven by net margin declining (22.1% → -19.9%), asset turnover improving (0.67x → 0.90x), leverage rising (2.35x → 4.63x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 22.1% | 0.67 | 2.35 | 34.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -21.1% | 0.75 | 2.81 | -44.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -15.4% | 0.71 | 3.54 | -38.7% |
| FY2025 | ₹0Cr | ₹-0Cr | -19.9% | 0.90 | 4.63 | -82.8% |
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.