DuPont Decomposition
Why does NIMBSPROJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.7% = 35.3% × 0.16 × 3.29
Latest: FY2025
Profitability
Net Margin
35.3%
928.0% →35.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.02x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.29x
1.19x →3.29x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~19%. Driven by net margin declining (928.0% → 35.3%), asset turnover improving (0.02x → 0.16x), leverage rising (1.19x → 3.29x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 928.0% | 0.02 | 1.19 | 18.4% |
| FY2025 | ₹0Cr | ₹0Cr | 35.3% | 0.16 | 3.29 | 18.7% |
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.