DuPont Decomposition
Why does NITIRAJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.8% = 6.3% × 0.82 × 1.12
Latest: FY2025
Profitability
Net Margin
6.3%
-0.8% →6.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.58x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.12x
1.18x →1.12x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.4 pp over 3 years. Driven by net margin improving (-0.8% → 6.3%), asset turnover improving (0.58x → 0.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -0.8% | 0.58 | 1.18 | -0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 12.0% | 1.11 | 1.14 | 15.1% |
| FY2025 | ₹0Cr | ₹0Cr | 6.3% | 0.82 | 1.12 | 5.8% |
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.