DuPont Decomposition
Why does NACLIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-21.6% = -7.6% × 0.96 × 2.96
Latest: FY2025
Profitability
Net Margin
-7.6%
4.5% →-7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
1.09x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.96x
3.34x →2.96x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 38.1 pp over 3 years. Driven by net margin declining (4.5% → -7.6%), asset turnover declining (1.09x → 0.96x), leverage falling (3.34x → 2.96x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.5% | 1.09 | 3.34 | 16.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -0.5% | 0.97 | 3.56 | -1.8% |
| FY2025 | ₹0Cr | ₹-0Cr | -7.6% | 0.96 | 2.96 | -21.6% |
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.