DuPont Decomposition
Why does INDIGOPNTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 10.6% × 0.95 × 1.37
Latest: FY2025
Profitability
Net Margin
10.6%
9.3% →10.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.95x
0.98x →0.95x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.37x
1.42x →1.37x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~14%. Driven by net margin improving (9.3% → 10.6%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 0.98 | 1.42 | 12.9% |
| FY2023 | ₹0Cr | ₹0Cr | 12.3% | 1.01 | 1.37 | 17.0% |
| FY2024 | ₹0Cr | ₹0Cr | 11.3% | 1.02 | 1.41 | 16.3% |
| FY2025 | ₹0Cr | ₹0Cr | 10.6% | 0.95 | 1.37 | 13.8% |
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.