DuPont Decomposition
Why does INGERRAND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
43.9% = 20.3% × 1.41 × 1.53
Latest: FY2025
Profitability
Net Margin
20.3%
22.1% →20.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.41x
0.35x →1.41x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.49x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 32.3 pp over 3 years. Driven by net margin declining (22.1% → 20.3%), asset turnover improving (0.35x → 1.41x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 22.1% | 0.35 | 1.49 | 11.6% |
| FY2024 | ₹0Cr | ₹0Cr | 21.0% | 0.36 | 1.47 | 11.0% |
| FY2025 | ₹0Cr | ₹0Cr | 20.3% | 1.41 | 1.53 | 43.9% |
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.