DuPont Decomposition
Why does NGIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.2% = 3.5% × 0.97 × 1.54
Latest: FY2026
Profitability
Net Margin
3.5%
2.9% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
1.41x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.54x
2.78x →1.54x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 5 years. Driven by asset turnover declining (1.41x → 0.97x), leverage falling (2.78x → 1.54x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.9% | 1.41 | 2.78 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 1.30 | 2.64 | 5.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -4.6% | 1.14 | 2.10 | -10.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -7.9% | 1.10 | 1.50 | -13.1% |
| FY2026 | ₹0Cr | ₹0Cr | 3.5% | 0.97 | 1.54 | 5.2% |
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.