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
8.3% = 3.5% × 1.27 × 1.87
Latest: FY2025
Profitability
Net Margin
3.5%
-14.3% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.27x
0.20x →1.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.87x
1.51x →1.87x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.5 pp over 3 years. Driven by net margin improving (-14.3% → 3.5%), asset turnover improving (0.20x → 1.27x), leverage rising (1.51x → 1.87x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -14.3% | 0.20 | 1.51 | -4.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -50.3% | 0.30 | 2.26 | -33.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 1.27 | 1.87 | 8.3% |
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.