DuPont Decomposition
Why does RELTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 8.7% × 0.38 × 1.84
Latest: FY2025
Profitability
Net Margin
8.7%
4.3% →8.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
1.69x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
2.15x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 9.4 pp over 4 years. Driven by net margin improving (4.3% → 8.7%), asset turnover declining (1.69x → 0.38x), leverage falling (2.15x → 1.84x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.3% | 1.69 | 2.15 | 15.5% |
| FY2023 | ₹0Cr | ₹0Cr | 6.2% | 0.55 | 2.19 | 7.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -39.4% | 0.32 | 2.45 | -31.2% |
| FY2025 | ₹0Cr | ₹0Cr | 8.7% | 0.38 | 1.84 | 6.1% |
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.