DuPont Decomposition
Why does ICDSLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.8% = 62.1% × 0.07 × 1.11
Latest: FY2025
Profitability
Net Margin
62.1%
457.8% →62.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.07x
0.05x →0.07x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.06x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 18.3 pp over 4 years. Driven by net margin declining (457.8% → 62.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 457.8% | 0.05 | 1.06 | 23.1% |
| FY2023 | ₹0Cr | ₹0Cr | 16.8% | 0.08 | 1.05 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 58.0% | 0.12 | 1.04 | 7.4% |
| FY2025 | ₹0Cr | ₹0Cr | 62.1% | 0.07 | 1.11 | 4.8% |
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.