DuPont Decomposition
Why does RESPONIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.8% = 14.0% × 0.82 × 1.29
Latest: FY2025
Profitability
Net Margin
14.0%
2.3% →14.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.70x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.29x
1.40x →1.29x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.5 pp over 3 years. Driven by net margin improving (2.3% → 14.0%), asset turnover improving (0.70x → 0.82x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.3% | 0.70 | 1.40 | 2.3% |
| FY2024 | ₹0Cr | ₹0Cr | 14.8% | 0.70 | 1.36 | 14.2% |
| FY2025 | ₹0Cr | ₹0Cr | 14.0% | 0.82 | 1.29 | 14.8% |
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.