DuPont Decomposition
Why does DLF earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 55.0% × 0.11 × 1.63
Latest: FY2025
Profitability
Net Margin
55.0%
39.1% →55.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.03x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.63x
1.43x →1.63x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.8 pp over 3 years. Driven by net margin improving (39.1% → 55.0%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 39.1% | 0.03 | 1.43 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 43.1% | 0.04 | 1.53 | 2.3% |
| FY2025 | ₹0Cr | ₹0Cr | 55.0% | 0.11 | 1.63 | 10.3% |
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.