DuPont Decomposition
Why does NAM-INDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
30.5% = 57.7% × 0.48 × 1.11
Latest: FY2025
Profitability
Net Margin
57.7%
56.9% →57.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.48x
0.09x →0.48x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.10x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 24.9 pp over 3 years. Driven by asset turnover improving (0.09x → 0.48x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 56.9% | 0.09 | 1.10 | 5.6% |
| FY2024 | ₹0Cr | ₹0Cr | 73.2% | 0.11 | 1.10 | 8.6% |
| FY2025 | ₹0Cr | ₹0Cr | 57.7% | 0.48 | 1.11 | 30.5% |
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.