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
17.4% = 5.1% × 1.39 × 2.45
Latest: FY2025
Profitability
Net Margin
5.1%
7.3% →5.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.39x
0.39x →1.39x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.45x
2.65x →2.45x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.8 pp over 3 years. Driven by net margin declining (7.3% → 5.1%), asset turnover improving (0.39x → 1.39x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 0.39 | 2.65 | 7.6% |
| FY2024 | ₹0Cr | ₹0Cr | 3.6% | 0.40 | 2.41 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 5.1% | 1.39 | 2.45 | 17.4% |
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.