DuPont Decomposition
Why does INDGN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.6% = 14.3% × 0.85 × 1.27
Latest: FY2025
Profitability
Net Margin
14.3%
9.9% →14.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.85x
1.23x →0.85x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.27x
1.77x →1.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.0 pp over 4 years. Driven by net margin improving (9.9% → 14.3%), asset turnover declining (1.23x → 0.85x), leverage falling (1.77x → 1.27x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.9% | 1.23 | 1.77 | 21.6% |
| FY2023 | ₹0Cr | ₹0Cr | 11.5% | 1.05 | 2.07 | 25.0% |
| FY2024 | ₹0Cr | ₹0Cr | 17.9% | 0.22 | 1.28 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 14.3% | 0.85 | 1.27 | 15.6% |
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.