DuPont Decomposition
Why does INDNIPPON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 9.9% × 0.89 × 1.32
Latest: FY2025
Profitability
Net Margin
9.9%
9.0% →9.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.22x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.32x
1.28x →1.32x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.0 pp over 3 years. Driven by asset turnover improving (0.22x → 0.89x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 9.0% | 0.22 | 1.28 | 2.5% |
| FY2024 | ₹0Cr | ₹0Cr | 10.4% | 0.23 | 1.34 | 3.3% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 0.89 | 1.32 | 11.6% |
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.