DuPont Decomposition
Why does DHAMPURSUG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.5% = 2.7% × 0.82 × 2.07
Latest: FY2025
Profitability
Net Margin
2.7%
7.7% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.87x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.07x
2.45x →2.07x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.8 pp over 4 years. Driven by net margin declining (7.7% → 2.7%), leverage falling (2.45x → 2.07x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.7% | 0.87 | 2.45 | 16.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 1.14 | 2.04 | 15.1% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.92 | 2.14 | 12.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.7% | 0.82 | 2.07 | 4.5% |
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.