DuPont Decomposition
Why does 3IINFOLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 5.1% × 1.05 × 1.74
Latest: FY2026
Profitability
Net Margin
5.1%
-8.5% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
0.70x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.74x
1.36x →1.74x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.5 pp over 5 years. Driven by net margin improving (-8.5% → 5.1%), asset turnover improving (0.70x → 1.05x), leverage rising (1.36x → 1.74x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -8.5% | 0.70 | 1.36 | -8.2% |
| FY2023 | ₹0Cr | ₹0Cr | 0.2% | 0.76 | 1.49 | 0.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -38.5% | 1.25 | 2.22 | -106.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 1.27 | 1.87 | 8.3% |
| FY2026 | ₹0Cr | ₹0Cr | 5.1% | 1.05 | 1.74 | 9.3% |
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.