DuPont Decomposition
Why does DSSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
31.3% = 5.7% × 1.63 × 3.36
Latest: FY2025
Profitability
Net Margin
5.7%
5.4% →5.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.63x
0.56x →1.63x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.36x
3.84x →3.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 19.6 pp over 3 years. Driven by asset turnover improving (0.56x → 1.63x), leverage falling (3.84x → 3.36x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 5.4% | 0.56 | 3.84 | 11.8% |
| FY2024 | ₹0Cr | ₹0Cr | 5.0% | 0.48 | 3.73 | 8.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 1.63 | 3.36 | 31.3% |
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.