DuPont Decomposition
Why does DVL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.5% = 30.1% × 0.11 × 1.31
Latest: FY2025
Profitability
Net Margin
30.1%
-103.8% →30.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.04x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.61x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.6 pp over 3 years. Driven by net margin improving (-103.8% → 30.1%), leverage falling (1.61x → 1.31x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -103.8% | 0.04 | 1.61 | -6.1% |
| FY2024 | ₹0Cr | ₹-0Cr | -182.9% | 0.05 | 1.82 | -16.0% |
| FY2025 | ₹0Cr | ₹0Cr | 30.1% | 0.11 | 1.31 | 4.5% |
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.