DuPont Decomposition
Why does DMCC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.0% = 4.7% × 1.31 × 1.80
Latest: FY2026
Profitability
Net Margin
4.7%
6.6% →4.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
0.84x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
1.98x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by net margin declining (6.6% → 4.7%), asset turnover improving (0.84x → 1.31x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.6% | 0.84 | 1.98 | 11.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.8% | 0.95 | 2.02 | 3.5% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 0.85 | 1.80 | 5.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.0% | 1.13 | 1.67 | 9.5% |
| FY2026 | ₹0Cr | ₹0Cr | 4.7% | 1.31 | 1.80 | 11.0% |
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.