DuPont Decomposition
Why does INDUSTOWER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.6% = 33.0% × 0.48 × 1.94
Latest: FY2025
Profitability
Net Margin
33.0%
20.7% →33.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.14x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.94x
2.21x →1.94x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 23.9 pp over 3 years. Driven by net margin improving (20.7% → 33.0%), asset turnover improving (0.14x → 0.48x), leverage falling (2.21x → 1.94x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 20.7% | 0.14 | 2.21 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 25.8% | 0.13 | 2.07 | 6.8% |
| FY2025 | ₹0Cr | ₹0Cr | 33.0% | 0.48 | 1.94 | 30.6% |
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.