DuPont Decomposition
Why does DREDGECORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.3% = -2.4% × 0.43 × 2.17
Latest: FY2025
Profitability
Net Margin
-2.4%
-4.2% →-2.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.43x
0.14x →0.43x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.17x
1.69x →2.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 3 years. Driven by net margin improving (-4.2% → -2.4%), asset turnover improving (0.14x → 0.43x), leverage rising (1.69x → 2.17x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -4.2% | 0.14 | 1.69 | -1.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -8.4% | 0.12 | 1.90 | -1.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -2.4% | 0.43 | 2.17 | -2.3% |
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.