DuPont Decomposition
Why does DJML earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 7.9% × 0.99 × 1.55
Latest: FY2026
Profitability
Net Margin
7.9%
6.3% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
1.18x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.59x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%. Driven by net margin improving (6.3% → 7.9%), asset turnover declining (1.18x → 0.99x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.3% | 1.18 | 1.59 | 11.9% |
| FY2023 | ₹0Cr | ₹0Cr | 6.6% | 1.08 | 1.64 | 11.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.8% | 0.95 | 1.79 | 15.0% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 0.72 | 1.78 | 10.5% |
| FY2026 | ₹0Cr | ₹0Cr | 7.9% | 0.99 | 1.55 | 12.1% |
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.