DuPont Decomposition
Why does INOXINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.9% = 17.7% × 0.77 × 1.89
Latest: FY2025
Profitability
Net Margin
17.7%
17.2% →17.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.77x
0.85x →0.77x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.89x
1.79x →1.89x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~26%.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.2% | 0.85 | 1.79 | 26.0% |
| FY2023 | ₹0Cr | ₹0Cr | 16.5% | 0.82 | 2.09 | 28.2% |
| FY2024 | ₹0Cr | ₹0Cr | 15.9% | 0.22 | 1.80 | 6.3% |
| FY2025 | ₹0Cr | ₹0Cr | 17.7% | 0.77 | 1.89 | 25.9% |
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.