DuPont Decomposition

Why does NSLNISP earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

-18.1% = -27.9% × 0.30 × 2.17

Latest: FY2025

Profitability

Net Margin

-27.9%

-46.6% →-27.9%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.30x

0.06x →0.30x

Revenue per ₹ of assets

Leverage

Equity Multiplier

2.17x

1.90x →2.17x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 12.5 pp over 2 years. Driven by net margin improving (-46.6% → -27.9%), asset turnover improving (0.06x → 0.30x), leverage rising (1.90x → 2.17x).

Historical Decomposition

Last 2 years

Year	Revenue	PAT	Net Margin	Asset TO	Leverage	ROE
FY2024	₹0Cr	₹-0Cr	-46.6%	0.06	1.90	-5.6%
FY2025	₹0Cr	₹-0Cr	-27.9%	0.30	2.17	-18.1%

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)

See DCF fair value for NSLNISP

Combine financial quality with intrinsic value.

See Fair Value →

DuPont decomposition from audited annual financials. Factual analysis, not investment advice.