DuPont Decomposition
Why does DHUNINV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.4% = 18.3% × 0.11 × 1.65
Latest: FY2025
Profitability
Net Margin
18.3%
60.6% →18.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.09x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
1.51x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.5 pp over 4 years. Driven by net margin declining (60.6% → 18.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 60.6% | 0.09 | 1.51 | 7.9% |
| FY2023 | ₹0Cr | ₹0Cr | 134.6% | 0.05 | 1.75 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 12.9% | 0.09 | 1.73 | 1.9% |
| FY2025 | ₹0Cr | ₹0Cr | 18.3% | 0.11 | 1.65 | 3.4% |
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.