DuPont Decomposition
Why does FDC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.7% = 12.7% × 0.78 × 1.19
Latest: FY2025
Profitability
Net Margin
12.7%
10.9% →12.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.78x
0.76x →0.78x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.18x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.9 pp over 3 years. Driven by net margin improving (10.9% → 12.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 10.9% | 0.76 | 1.18 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 15.7% | 0.79 | 1.18 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 12.7% | 0.78 | 1.19 | 11.7% |
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.