DuPont Decomposition
Why does REMSONSIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 3.9% × 1.30 × 2.42
Latest: FY2026
Profitability
Net Margin
3.9%
1.9% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.30x
1.63x →1.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.42x
5.06x →2.42x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.4 pp over 5 years. Driven by net margin improving (1.9% → 3.9%), asset turnover declining (1.63x → 1.30x), leverage falling (5.06x → 2.42x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.9% | 1.63 | 5.06 | 15.5% |
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 1.64 | 4.50 | 19.8% |
| FY2024 | ₹0Cr | ₹0Cr | 4.3% | 1.31 | 2.13 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 3.8% | 1.21 | 2.49 | 11.4% |
| FY2026 | ₹0Cr | ₹0Cr | 3.9% | 1.30 | 2.42 | 12.1% |
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.