DuPont Decomposition
Why does DYNAMATECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.1% = 2.0% × 0.88 × 2.33
Latest: FY2026
Profitability
Net Margin
2.0%
1.3% →2.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.88x
0.89x →0.88x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.33x
3.64x →2.33x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~4%. Driven by leverage falling (3.64x → 2.33x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 0.89 | 3.64 | 4.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 0.78 | 3.08 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 8.6% | 0.90 | 2.35 | 18.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.1% | 0.85 | 2.30 | 6.0% |
| FY2026 | ₹0Cr | ₹0Cr | 2.0% | 0.88 | 2.33 | 4.1% |
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.