DuPont Decomposition
Why does INDRAMEDCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.8% = 12.4% × 1.50 × 1.34
Latest: FY2026
Profitability
Net Margin
12.4%
6.8% →12.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.50x
1.87x →1.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.34x
1.42x →1.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.8 pp over 5 years. Driven by net margin improving (6.8% → 12.4%), asset turnover declining (1.87x → 1.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 1.87 | 1.42 | 18.0% |
| FY2023 | ₹0Cr | ₹0Cr | 8.1% | 1.92 | 1.46 | 22.7% |
| FY2024 | ₹0Cr | ₹0Cr | 10.3% | 1.66 | 1.51 | 25.9% |
| FY2025 | ₹0Cr | ₹0Cr | 11.9% | 1.59 | 1.43 | 27.0% |
| FY2026 | ₹0Cr | ₹0Cr | 12.4% | 1.50 | 1.34 | 24.8% |
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.