DuPont Decomposition
Why does IFGLEXPOR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.9% = 2.6% × 1.01 × 1.46
Latest: FY2025
Profitability
Net Margin
2.6%
8.0% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.26x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.42x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~4%. Driven by net margin declining (8.0% → 2.6%), asset turnover improving (0.26x → 1.01x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 8.0% | 0.26 | 1.42 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.26 | 1.39 | 1.2% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 1.01 | 1.46 | 3.9% |
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.