DuPont Decomposition
Why does DEVX earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.2% = 1.1% × 0.29 × 9.86
Latest: FY2025
Profitability
Net Margin
1.1%
-18.4% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.29x
0.25x →0.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
9.86x
231.11x →9.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1053.1 pp over 3 years. Driven by net margin improving (-18.4% → 1.1%), leverage falling (231.11x → 9.86x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -18.4% | 0.25 | 231.11 | -1049.9% |
| FY2024 | ₹0Cr | ₹0Cr | 0.4% | 0.26 | 14.28 | 1.5% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.29 | 9.86 | 3.2% |
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.