DuPont Decomposition
Why does NELCAST earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.1% = 3.6% × 1.11 × 2.01
Latest: FY2026
Profitability
Net Margin
3.6%
1.5% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.11x
0.96x →1.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.01x
2.18x →2.01x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.9 pp over 5 years. Driven by net margin improving (1.5% → 3.6%), asset turnover improving (0.96x → 1.11x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.5% | 0.96 | 2.18 | 3.2% |
| FY2023 | ₹0Cr | ₹0Cr | 2.4% | 1.22 | 2.20 | 6.3% |
| FY2024 | ₹0Cr | ₹0Cr | 4.3% | 1.11 | 2.18 | 10.5% |
| FY2025 | ₹0Cr | ₹0Cr | 3.0% | 1.07 | 2.11 | 6.7% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 1.11 | 2.01 | 8.1% |
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.