DuPont Decomposition
Why does RAJRILTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.7% = 2.9% × 1.97 × 3.82
Latest: FY2026
Profitability
Net Margin
2.9%
-9.0% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.97x
0.44x →1.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.82x
2.99x →3.82x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 33.6 pp over 4 years. Driven by net margin improving (-9.0% → 2.9%), asset turnover improving (0.44x → 1.97x), leverage rising (2.99x → 3.82x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -9.0% | 0.44 | 2.99 | -11.9% |
| FY2024 | ₹0Cr | ₹0Cr | 0.5% | 1.77 | 3.89 | 3.7% |
| FY2025 | ₹0Cr | ₹0Cr | 1.6% | 1.70 | 4.08 | 11.3% |
| FY2026 | ₹0Cr | ₹0Cr | 2.9% | 1.97 | 3.82 | 21.7% |
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.