DuPont Decomposition
Why does INDOAMIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.2% = 6.8% × 1.29 × 2.29
Latest: FY2026
Profitability
Net Margin
6.8%
3.0% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.29x
1.41x →1.29x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.29x
2.96x →2.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.9 pp over 5 years. Driven by net margin improving (3.0% → 6.8%), asset turnover declining (1.41x → 1.29x), leverage falling (2.96x → 2.29x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.0% | 1.41 | 2.96 | 12.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 1.58 | 2.65 | 18.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.5% | 1.49 | 2.40 | 16.1% |
| FY2025 | ₹0Cr | ₹0Cr | 5.2% | 1.39 | 2.45 | 17.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.8% | 1.29 | 2.29 | 20.2% |
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.