DuPont Decomposition
Why does ISGEC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 1.6% × 0.84 × 2.95
Latest: FY2026
Profitability
Net Margin
1.6%
2.0% →1.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.81x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.95x
3.19x →2.95x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 5 years. Driven by leverage falling (3.19x → 2.95x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.0% | 0.81 | 3.19 | 5.1% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 0.89 | 3.07 | 8.5% |
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 0.79 | 3.11 | 9.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 0.80 | 2.94 | 6.9% |
| FY2026 | ₹0Cr | ₹0Cr | 1.6% | 0.84 | 2.95 | 4.0% |
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.