DuPont Decomposition
Why does IITL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-2.9% = -62.4% × 0.05 × 0.99
Latest: FY2026
Profitability
Net Margin
-62.4%
1050.9% →-62.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.05x
0.01x →0.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
0.99x
1.06x →0.99x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 12.7 pp over 3 years. Driven by net margin declining (1050.9% → -62.4%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1050.9% | 0.01 | 1.06 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 16.6% | 0.05 | 0.99 | 0.9% |
| FY2026 | ₹0Cr | ₹-0Cr | -62.4% | 0.05 | 0.99 | -2.9% |
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.