DuPont Decomposition
Why does NSIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.3% = 42.9% × 0.01 × 1.13
Latest: FY2025
Profitability
Net Margin
42.9%
64.0% →42.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.00x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.18x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~0%. Driven by net margin declining (64.0% → 42.9%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0.1Cr | ₹0.1Cr | 64.0% | 0.00 | 1.18 | 0.1% |
| FY2024 | ₹0Cr | ₹0Cr | 16.1% | 0.00 | 1.15 | 0.0% |
| FY2025 | ₹0Cr | ₹0Cr | 42.9% | 0.01 | 1.13 | 0.3% |
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.