DuPont Decomposition
Why does INTELLECT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.9% = 11.4% × 0.66 × 1.44
Latest: FY2026
Profitability
Net Margin
11.4%
18.6% →11.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.66x
0.72x →0.66x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.43x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.4 pp over 5 years. Driven by net margin declining (18.6% → 11.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.6% | 0.72 | 1.43 | 19.3% |
| FY2023 | ₹0Cr | ₹0Cr | 12.0% | 0.77 | 1.40 | 13.0% |
| FY2024 | ₹0Cr | ₹0Cr | 12.8% | 0.74 | 1.40 | 13.2% |
| FY2025 | ₹0Cr | ₹0Cr | 13.3% | 0.64 | 1.39 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 11.4% | 0.66 | 1.44 | 10.9% |
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.