DuPont Decomposition
Why does DHRUV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.7% = 6.8% × 0.72 × 1.37
Latest: FY2025
Profitability
Net Margin
6.8%
5.9% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.72x
0.75x →0.72x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.90x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.7 pp over 3 years. Driven by leverage falling (1.90x → 1.37x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.9% | 0.75 | 1.90 | 8.4% |
| FY2024 | ₹0Cr | ₹0Cr | 7.2% | 0.71 | 1.73 | 8.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.72 | 1.37 | 6.7% |
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.