DuPont Decomposition
Why does NOCIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.1% = 4.3% × 0.62 × 1.19
Latest: FY2026
Profitability
Net Margin
4.3%
11.3% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.62x
0.85x →0.62x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.27x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.0 pp over 5 years. Driven by net margin declining (11.3% → 4.3%), asset turnover declining (0.85x → 0.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.3% | 0.85 | 1.27 | 12.2% |
| FY2023 | ₹0Cr | ₹0Cr | 9.3% | 0.87 | 1.20 | 9.6% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 0.71 | 1.19 | 7.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.4% | 0.68 | 1.17 | 5.8% |
| FY2026 | ₹0Cr | ₹0Cr | 4.3% | 0.62 | 1.19 | 3.1% |
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.