DuPont Decomposition
Why does DUCON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 3.0% × 1.49 × 1.72
Latest: FY2025
Profitability
Net Margin
3.0%
1.1% →3.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.49x
1.28x →1.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
2.00x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.8 pp over 4 years. Driven by net margin improving (1.1% → 3.0%), asset turnover improving (1.28x → 1.49x), leverage falling (2.00x → 1.72x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.1% | 1.28 | 2.00 | 3.0% |
| FY2023 | ₹0Cr | ₹0Cr | 1.0% | 1.43 | 2.25 | 3.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 1.43 | 2.43 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.49 | 1.72 | 7.7% |
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.