DuPont Decomposition
Why does NURECA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.4% = 0.8% × 0.52 × 1.08
Latest: FY2025
Profitability
Net Margin
0.8%
17.6% →0.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
1.17x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.08x
1.08x →1.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.7 pp over 4 years. Driven by net margin declining (17.6% → 0.8%), asset turnover declining (1.17x → 0.52x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 17.6% | 1.17 | 1.08 | 22.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -7.4% | 0.54 | 1.06 | -4.2% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.9% | 0.45 | 1.06 | -0.9% |
| FY2025 | ₹0Cr | ₹0Cr | 0.8% | 0.52 | 1.08 | 0.4% |
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.