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Intellect Design Arena (NSE:INTELLECT) ROE % : 10.93% (As of Dec. 2024)


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What is Intellect Design Arena ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Intellect Design Arena's annualized net income for the quarter that ended in Dec. 2024 was ₹2,808 Mil. Intellect Design Arena's average Total Stockholders Equity over the quarter that ended in Dec. 2024 was ₹25,689 Mil. Therefore, Intellect Design Arena's annualized ROE % for the quarter that ended in Dec. 2024 was 10.93%.

The historical rank and industry rank for Intellect Design Arena's ROE % or its related term are showing as below:

NSE:INTELLECT' s ROE % Range Over the Past 10 Years
Min: -13.51   Med: 10.25   Max: 21.81
Current: 11.2

During the past 10 years, Intellect Design Arena's highest ROE % was 21.81%. The lowest was -13.51%. And the median was 10.25%.

NSE:INTELLECT's ROE % is ranked better than
66.12% of 2583 companies
in the Software industry
Industry Median: 4.52 vs NSE:INTELLECT: 11.20

Intellect Design Arena ROE % Historical Data

The historical data trend for Intellect Design Arena's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Intellect Design Arena ROE % Chart

Intellect Design Arena Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.55 21.56 21.81 13.82 14.29

Intellect Design Arena Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.08 11.97 12.21 8.22 10.93

Competitive Comparison of Intellect Design Arena's ROE %

For the Software - Application subindustry, Intellect Design Arena's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Intellect Design Arena's ROE % Distribution in the Software Industry

For the Software industry and Technology sector, Intellect Design Arena's ROE % distribution charts can be found below:

* The bar in red indicates where Intellect Design Arena's ROE % falls into.


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Intellect Design Arena ROE % Calculation

Intellect Design Arena's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=3211.88/( (20577.04+24388.53)/ 2 )
=3211.88/22482.785
=14.29 %

Intellect Design Arena's annualized ROE % for the quarter that ended in Dec. 2024 is calculated as

ROE %=Net Income (Q: Dec. 2024 )/( (Total Stockholders Equity (Q: Sep. 2024 )+Total Stockholders Equity (Q: Dec. 2024 ))/ count )
=2807.64/( (25689.32+0)/ 1 )
=2807.64/25689.32
=10.93 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2024) net income data. ROE % is displayed in the 30-year financial page.


Intellect Design Arena  (NSE:INTELLECT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=2807.64/25689.32
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(2807.64 / 24385.04)*(24385.04 / 34582.2)*(34582.2 / 25689.32)
=Net Margin %*Asset Turnover*Equity Multiplier
=11.51 %*0.7051*1.3462
=ROA %*Equity Multiplier
=8.12 %*1.3462
=10.93 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2024 )
=Net Income/Total Stockholders Equity
=2807.64/25689.32
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (2807.64 / 3748.68) * (3748.68 / 3164.64) * (3164.64 / 24385.04) * (24385.04 / 34582.2) * (34582.2 / 25689.32)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.749 * 1.1846 * 12.98 % * 0.7051 * 1.3462
=10.93 %

Note: The net income data used here is four times the quarterly (Dec. 2024) net income data. The Revenue data used here is four times the quarterly (Dec. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Intellect Design Arena ROE % Related Terms

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Intellect Design Arena Business Description

Traded in Other Exchanges
Address
SIPCOT IT Park, Plot No. 3/G-3, Siruseri, Chennai, TN, IND, 600130
Intellect Design Arena Ltd is an Indian IT software services company. It is engaged in the business of software and financial technology development for banking, insurance, and other financial services. The company operates under the primary business segment of Software Product Licence and related services. It derives revenue from the operations comprising income from its four business verticals, Global Consumer Banking, Global Transaction Banking, IntellectAI, and Digital Technology for Commerce. The company products include Digital cards, Digital lending, Capital cube, Xponent, Digital core, Payments, Wealth Qube, and others. Geographically, the company derives a majority of its revenue from outside India.

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