DuPont Decomposition
Why does IXIGO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.5% = 6.6% × 1.01 × 1.42
Latest: FY2025
Profitability
Net Margin
6.6%
-6.4% →6.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.70x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.42x
1.57x →1.42x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 16.6 pp over 4 years. Driven by net margin improving (-6.4% → 6.6%), asset turnover improving (0.70x → 1.01x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -6.4% | 0.70 | 1.57 | -7.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 0.86 | 1.51 | 5.6% |
| FY2024 | ₹0Cr | ₹0Cr | 11.6% | 1.04 | 1.42 | 17.0% |
| FY2025 | ₹0Cr | ₹0Cr | 6.6% | 1.01 | 1.42 | 9.5% |
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.