DuPont Decomposition
Why does NGLFINE earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.5% = 5.8% × 0.84 × 1.53
Latest: FY2025
Profitability
Net Margin
5.8%
15.9% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
1.13x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.36x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.1 pp over 4 years. Driven by net margin declining (15.9% → 5.8%), asset turnover declining (1.13x → 0.84x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 15.9% | 1.13 | 1.36 | 24.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.5% | 0.95 | 1.29 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 12.4% | 0.94 | 1.35 | 15.7% |
| FY2025 | ₹0Cr | ₹0Cr | 5.8% | 0.84 | 1.53 | 7.5% |
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.