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%
150.2% →30.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.10x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.31x
1.19x →1.31x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.9 pp over 4 years. Driven by net margin declining (150.2% → 30.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 150.2% | 0.10 | 1.19 | 17.4% |
| FY2023 | ₹0Cr | ₹0Cr | 262.7% | 0.06 | 1.34 | 20.6% |
| FY2024 | ₹0Cr | ₹0Cr | 43.6% | 0.09 | 1.33 | 5.2% |
| 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.