DuPont Decomposition
Why does INDIAMART earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.2% = 39.7% × 0.34 × 1.89
Latest: FY2025
Profitability
Net Margin
39.7%
29.0% →39.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.28x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
1.63x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by net margin improving (29.0% → 39.7%), leverage rising (1.63x → 1.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 29.0% | 0.28 | 1.63 | 13.2% |
| FY2024 | ₹0Cr | ₹0Cr | 27.9% | 0.35 | 1.99 | 19.2% |
| FY2025 | ₹0Cr | ₹0Cr | 39.7% | 0.34 | 1.89 | 25.2% |
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.