DuPont Decomposition
Why does INTLCONV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.4% = 60.6% × 0.30 × 1.40
Latest: FY2025
Profitability
Net Margin
60.6%
13.4% →60.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.69x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.40x
1.45x →1.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by net margin improving (13.4% → 60.6%), asset turnover declining (0.69x → 0.30x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.4% | 0.69 | 1.45 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 46.6% | 0.30 | 1.61 | 22.9% |
| FY2025 | ₹0Cr | ₹0Cr | 60.6% | 0.30 | 1.40 | 25.4% |
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.