DuPont Decomposition
Why does DPABHUSHAN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.9% = 3.4% × 3.95 × 2.07
Latest: FY2025
Profitability
Net Margin
3.4%
1.2% →3.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.95x
0.94x →3.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.07x
2.25x →2.07x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 25.4 pp over 3 years. Driven by net margin improving (1.2% → 3.4%), asset turnover improving (0.94x → 3.95x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 0.94 | 2.25 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 1.04 | 2.25 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.4% | 3.95 | 2.07 | 27.9% |
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.