DuPont Decomposition
Why does INDIAGLYCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.2% = 6.1% × 0.61 × 2.74
Latest: FY2025
Profitability
Net Margin
6.1%
7.7% →6.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.61x
0.33x →0.61x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.74x
2.56x →2.74x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.7 pp over 3 years. Driven by net margin declining (7.7% → 6.1%), asset turnover improving (0.33x → 0.61x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.33 | 2.56 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.5% | 0.36 | 2.74 | 8.4% |
| FY2025 | ₹0Cr | ₹0Cr | 6.1% | 0.61 | 2.74 | 10.2% |
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.