DuPont Decomposition
Why does DICIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 2.0% × 1.41 × 1.47
Latest: FY2026
Profitability
Net Margin
2.0%
4.7% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.41x
1.34x →1.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.47x
1.54x →1.47x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.7 pp over 4 years. Driven by net margin declining (4.7% → 2.0%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 1.34 | 1.54 | 9.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -2.8% | 1.42 | 1.47 | -5.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.2% | 1.49 | 1.41 | 4.7% |
| FY2026 | ₹0Cr | ₹0Cr | 2.0% | 1.41 | 1.47 | 4.0% |
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.