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
26.9% = 6.0% × 1.41 × 3.22
Latest: FY2026
Profitability
Net Margin
6.0%
2.5% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.41x
2.19x →1.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.22x
4.40x →3.22x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.7 pp over 5 years. Driven by net margin improving (2.5% → 6.0%), asset turnover declining (2.19x → 1.41x), leverage falling (4.40x → 3.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 2.19 | 4.40 | 24.2% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 2.00 | 3.84 | 31.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.3% | 1.74 | 3.73 | 34.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 1.63 | 3.36 | 31.3% |
| FY2026 | ₹0Cr | ₹0Cr | 6.0% | 1.41 | 3.22 | 26.9% |
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.