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
2.6% = 18.3% × 0.11 × 1.29
Latest: FY2025
Profitability
Net Margin
18.3%
206.7% →18.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.04x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.29x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.8 pp over 3 years. Driven by net margin declining (206.7% → 18.3%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 206.7% | 0.04 | 1.29 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 17.6% | 0.06 | 1.29 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 18.3% | 0.11 | 1.29 | 2.6% |
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.