DuPont Decomposition
Why does RPEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.1% = 18.5% × 0.86 × 1.19
Latest: FY2025
Profitability
Net Margin
18.5%
18.1% →18.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
0.75x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.22x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 4 years. Driven by asset turnover improving (0.75x → 0.86x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.1% | 0.75 | 1.22 | 16.4% |
| FY2023 | ₹0Cr | ₹0Cr | 18.7% | 0.84 | 1.21 | 18.9% |
| FY2024 | ₹0Cr | ₹0Cr | 19.6% | 0.71 | 1.18 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 18.5% | 0.86 | 1.19 | 19.1% |
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.