DuPont Decomposition
Why does DIGJAMLMTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-196.5% = -58.3% × 0.23 × 14.98
Latest: FY2025
Profitability
Net Margin
-58.3%
3.9% →-58.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.23x
0.21x →0.23x
Revenue per ₹ of assets
Leverage
Equity Multiplier
14.98x
3.66x →14.98x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 199.5 pp over 4 years. Driven by net margin declining (3.9% → -58.3%), leverage rising (3.66x → 14.98x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.9% | 0.21 | 3.66 | 3.0% |
| FY2023 | ₹0Cr | ₹-0Cr | -36.8% | 0.23 | 5.10 | -43.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -476.6% | 0.03 | 5.26 | -76.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -58.3% | 0.23 | 14.98 | -196.5% |
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.