DuPont Decomposition
Why does NIPPOBATRY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
26.3% = 26.5% × 0.65 × 1.53
Latest: FY2025
Profitability
Net Margin
26.5%
1.4% →26.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.65x
1.11x →0.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.53x
1.86x →1.53x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 23.4 pp over 4 years. Driven by net margin improving (1.4% → 26.5%), asset turnover declining (1.11x → 0.65x), leverage falling (1.86x → 1.53x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.4% | 1.11 | 1.86 | 2.9% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.0% | 1.11 | 1.97 | -2.2% |
| FY2024 | ₹0Cr | ₹0Cr | 1.5% | 1.07 | 2.19 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 26.5% | 0.65 | 1.53 | 26.3% |
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.