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
11.3% = 13.0% × 0.74 × 1.17
Latest: FY2026
Profitability
Net Margin
13.0%
14.2% →13.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.74x
0.67x →0.74x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.16x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~11%. Driven by net margin declining (14.2% → 13.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.2% | 0.67 | 1.16 | 11.1% |
| FY2023 | ₹0Cr | ₹0Cr | 10.9% | 0.76 | 1.18 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 15.8% | 0.78 | 1.18 | 14.6% |
| FY2025 | ₹0Cr | ₹0Cr | 12.7% | 0.78 | 1.19 | 11.7% |
| FY2026 | ₹0Cr | ₹0Cr | 13.0% | 0.74 | 1.17 | 11.3% |
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.