DuPont Decomposition
Why does ICICIPRULI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
11.8% = 2.6% × 0.19 × 23.43
Latest: FY2026
Profitability
Net Margin
2.6%
1.2% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.19x
0.25x →0.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
23.43x
26.69x →23.43x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 5 years. Driven by net margin improving (1.2% → 2.6%), leverage falling (26.69x → 23.43x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.2% | 0.25 | 26.69 | 8.3% |
| FY2023 | ₹0Cr | ₹0Cr | 1.7% | 0.19 | 25.36 | 8.1% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 0.30 | 27.17 | 7.7% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 0.22 | 26.33 | 9.9% |
| FY2026 | ₹0Cr | ₹0Cr | 2.6% | 0.19 | 23.43 | 11.8% |
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.