DuPont Decomposition
Why does INOXWIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.0% = 12.8% × 0.40 × 1.57
Latest: FY2025
Profitability
Net Margin
12.8%
-61.9% →12.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.40x
0.03x →0.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
3.50x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.9 pp over 3 years. Driven by net margin improving (-61.9% → 12.8%), asset turnover improving (0.03x → 0.40x), leverage falling (3.50x → 1.57x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -61.9% | 0.03 | 3.50 | -6.9% |
| FY2024 | ₹0Cr | ₹0Cr | 7.0% | 0.08 | 4.00 | 2.2% |
| FY2025 | ₹0Cr | ₹0Cr | 12.8% | 0.40 | 1.57 | 8.0% |
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.