DuPont Decomposition
Why does NIACL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.1% = 2.9% × 0.44 × 3.19
Latest: FY2026
Profitability
Net Margin
2.9%
0.5% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.38x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.19x
3.74x →3.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.3 pp over 5 years. Driven by net margin improving (0.5% → 2.9%), leverage falling (3.74x → 3.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.5% | 0.38 | 3.74 | 0.8% |
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 0.43 | 3.80 | 4.0% |
| FY2024 | ₹0Cr | ₹0Cr | 2.5% | 0.41 | 3.80 | 4.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.4% | 0.40 | 3.79 | 3.6% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 0.44 | 3.19 | 4.1% |
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.