DuPont Decomposition
Why does REGAAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.6% = 5.3% × 1.04 × 3.53
Latest: FY2025
Profitability
Net Margin
5.3%
7.1% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.04x
1.33x →1.04x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.53x
2.93x →3.53x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 8.1 pp over 4 years. Driven by net margin declining (7.1% → 5.3%), asset turnover declining (1.33x → 1.04x), leverage rising (2.93x → 3.53x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.1% | 1.33 | 2.93 | 27.6% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 1.28 | 3.30 | 14.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 1.01 | 4.35 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 1.04 | 3.53 | 19.6% |
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.