DuPont Decomposition
Why does DIAMINESQ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-8.1% = -33.2% × 0.22 × 1.11
Latest: FY2026
Profitability
Net Margin
-33.2%
25.4% →-33.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.22x
0.60x →0.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.10x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 24.8 pp over 5 years. Driven by net margin declining (25.4% → -33.2%), asset turnover declining (0.60x → 0.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 25.4% | 0.60 | 1.10 | 16.7% |
| FY2023 | ₹0Cr | ₹0Cr | 38.0% | 0.73 | 1.12 | 31.1% |
| FY2024 | ₹0Cr | ₹0Cr | 15.1% | 0.63 | 1.10 | 10.4% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 0.40 | 1.10 | 1.7% |
| FY2026 | ₹0Cr | ₹-0Cr | -33.2% | 0.22 | 1.11 | -8.1% |
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.