DuPont Decomposition
Why does REPCOHOME earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 27.6% × 0.11 × 4.29
Latest: FY2025
Profitability
Net Margin
27.6%
24.7% →27.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.11x
0.03x →0.11x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.29x
4.87x →4.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.2 pp over 3 years. Driven by net margin improving (24.7% → 27.6%), leverage falling (4.87x → 4.29x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 24.7% | 0.03 | 4.87 | 3.2% |
| FY2024 | ₹0Cr | ₹0Cr | 29.0% | 0.03 | 4.62 | 3.8% |
| FY2025 | ₹0Cr | ₹0Cr | 27.6% | 0.11 | 4.29 | 13.5% |
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.