DuPont Decomposition
Why does REPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.0% = 12.5% × 0.53 × 1.36
Latest: FY2025
Profitability
Net Margin
12.5%
19.3% →12.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.60x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.39x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.9 pp over 4 years. Driven by net margin declining (19.2% → 12.5%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 19.3% | 0.60 | 1.39 | 15.9% |
| FY2023 | ₹0Cr | ₹0Cr | 13.8% | 0.55 | 1.51 | 11.5% |
| FY2024 | ₹0Cr | ₹0Cr | 14.0% | 0.57 | 1.42 | 11.4% |
| FY2025 | ₹0Cr | ₹0Cr | 12.5% | 0.53 | 1.36 | 9.0% |
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.