DuPont Decomposition
Why does INDIANCARD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
27.2% = 231.3% × 0.11 × 1.11
Latest: FY2025
Profitability
Net Margin
231.3%
308.3% →231.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.21x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.13x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 44.2 pp over 4 years. Driven by net margin declining (308.3% → 231.3%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 308.3% | 0.21 | 1.13 | 71.4% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.21 | 1.18 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 17.0% | 0.16 | 1.19 | 3.2% |
| FY2025 | ₹0Cr | ₹0Cr | 231.3% | 0.11 | 1.11 | 27.2% |
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.