DuPont Decomposition
Why does NDRAUTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.6% = 7.5% × 1.46 × 1.61
Latest: FY2025
Profitability
Net Margin
7.5%
7.7% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.46x
0.38x →1.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
1.58x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.1 pp over 3 years. Driven by asset turnover improving (0.38x → 1.46x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 7.7% | 0.38 | 1.58 | 4.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.6% | 0.44 | 1.56 | 4.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.46 | 1.61 | 17.6% |
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.