DuPont Decomposition
Why does INDTERRAIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-23.3% = -12.5% × 0.77 × 2.42
Latest: FY2025
Profitability
Net Margin
-12.5%
-0.7% →-12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.71x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.42x
2.41x →2.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.2 pp over 4 years. Driven by net margin declining (-0.7% → -12.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -0.7% | 0.71 | 2.41 | -1.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.4% | 0.92 | 2.58 | 3.4% |
| FY2024 | ₹0Cr | ₹-0Cr | -3.3% | 0.87 | 2.65 | -7.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -12.5% | 0.77 | 2.42 | -23.3% |
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.