DuPont Decomposition
Why does INDIASHLTR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.9% = 37.8% × 0.13 × 2.86
Latest: FY2025
Profitability
Net Margin
37.8%
34.6% →37.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.13x
0.12x →0.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.86x
2.99x →2.86x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.0 pp over 4 years. Driven by net margin improving (34.6% → 37.8%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 34.6% | 0.12 | 2.99 | 11.9% |
| FY2023 | ₹0Cr | ₹0Cr | 31.3% | 0.12 | 3.46 | 12.5% |
| FY2024 | ₹0Cr | ₹0Cr | 36.3% | 0.12 | 2.52 | 10.8% |
| FY2025 | ₹0Cr | ₹0Cr | 37.8% | 0.13 | 2.86 | 13.9% |
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.