DuPont Decomposition
Why does IMAGICAA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.1% = 0.2% × 0.21 × 1.40
Latest: FY2026
Profitability
Net Margin
0.2%
149.7% →0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.21x
0.22x →0.21x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
4.71x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 151.8 pp over 4 years. Driven by net margin declining (149.7% → 0.2%), leverage falling (4.71x → 1.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 149.7% | 0.22 | 4.71 | 151.9% |
| FY2024 | ₹0Cr | ₹0Cr | 223.8% | 0.20 | 1.61 | 73.2% |
| FY2025 | ₹0Cr | ₹0Cr | 18.8% | 0.22 | 1.51 | 6.2% |
| FY2026 | ₹0Cr | ₹0Cr | 0.2% | 0.21 | 1.40 | 0.1% |
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.