DuPont Decomposition
Why does NIITLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.5% = 1.4% × 0.31 × 1.17
Latest: FY2026
Profitability
Net Margin
1.4%
90.3% →1.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.12x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
1.39x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.4 pp over 5 years. Driven by net margin declining (90.3% → 1.4%), asset turnover improving (0.12x → 0.31x), leverage falling (1.39x → 1.17x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 90.3% | 0.12 | 1.39 | 14.9% |
| FY2023 | ₹0Cr | ₹0Cr | 0.9% | 0.30 | 1.14 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 12.6% | 0.26 | 1.13 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 0.30 | 1.12 | 4.3% |
| FY2026 | ₹0Cr | ₹0Cr | 1.4% | 0.31 | 1.17 | 0.5% |
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.