DuPont Decomposition
Why does DHARMAJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.8% = 3.7% × 1.29 × 1.86
Latest: FY2025
Profitability
Net Margin
3.7%
7.3% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.29x
1.78x →1.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.86x
2.59x →1.86x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 25.0 pp over 4 years. Driven by net margin declining (7.3% → 3.7%), asset turnover declining (1.78x → 1.29x), leverage falling (2.59x → 1.86x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.3% | 1.78 | 2.59 | 33.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 1.22 | 1.36 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 6.8% | 1.16 | 1.57 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.7% | 1.29 | 1.86 | 8.8% |
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.