DuPont Decomposition
Why does INTENTECH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.6% = 10.9% × 0.86 × 1.23
Latest: FY2025
Profitability
Net Margin
10.9%
23.0% →10.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.71x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.23x
1.20x →1.23x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.0 pp over 4 years. Driven by net margin declining (23.0% → 10.9%), asset turnover improving (0.71x → 0.86x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 23.0% | 0.71 | 1.20 | 19.6% |
| FY2023 | ₹0Cr | ₹0Cr | 15.2% | 0.68 | 1.18 | 12.2% |
| FY2024 | ₹0Cr | ₹0Cr | 13.7% | 0.75 | 1.18 | 12.1% |
| FY2025 | ₹0Cr | ₹0Cr | 10.9% | 0.86 | 1.23 | 11.6% |
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.