DuPont Decomposition
Why does INDOSTAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.3% = 9.5% × 0.10 × 3.65
Latest: FY2025
Profitability
Net Margin
9.5%
-263.1% →9.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.10x
0.03x →0.10x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.65x
3.07x →3.65x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 30.0 pp over 4 years. Driven by net margin improving (-263.1% → 9.5%), leverage rising (3.07x → 3.65x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -263.1% | 0.03 | 3.07 | -26.7% |
| FY2023 | ₹0Cr | ₹0Cr | 26.6% | 0.03 | 2.93 | 2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 7.4% | 0.04 | 3.44 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 9.5% | 0.10 | 3.65 | 3.3% |
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.