DuPont Decomposition
Why does NILASPACES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.3% = 10.8% × 0.44 × 2.19
Latest: FY2025
Profitability
Net Margin
10.8%
-401.9% →10.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.01x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.19x
1.59x →2.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 13.9 pp over 3 years. Driven by net margin improving (-401.9% → 10.8%), asset turnover improving (0.01x → 0.44x), leverage rising (1.59x → 2.19x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -401.9% | 0.01 | 1.59 | -3.6% |
| FY2024 | ₹0Cr | ₹0Cr | 14.8% | 0.39 | 1.80 | 10.5% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 0.44 | 2.19 | 10.3% |
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.