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%
5.5% →2.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
1.35x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.07x
2.04x →2.07x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.6 pp over 3 years. Driven by net margin declining (5.5% → 2.7%), asset turnover declining (1.35x → 0.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 1.35 | 2.04 | 15.2% |
| FY2024 | ₹0Cr | ₹0Cr | 5.1% | 1.12 | 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.