DuPont Decomposition
Why does DYCL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.3% = 6.3% × 1.74 × 1.58
Latest: FY2025
Profitability
Net Margin
6.3%
5.5% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.74x
1.61x →1.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.58x
2.37x →1.58x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.6 pp over 4 years. Driven by asset turnover improving (1.61x → 1.74x), leverage falling (2.37x → 1.58x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 1.61 | 2.37 | 20.9% |
| FY2023 | ₹0Cr | ₹0Cr | 5.6% | 0.44 | 2.27 | 5.6% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 0.48 | 2.33 | 6.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 1.74 | 1.58 | 17.3% |
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.