DuPont Decomposition
Why does RPPINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 4.5% × 1.51 × 1.80
Latest: FY2025
Profitability
Net Margin
4.5%
0.7% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.51x
1.05x →1.51x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.80x
2.26x →1.80x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.7 pp over 4 years. Driven by net margin improving (0.7% → 4.5%), asset turnover improving (1.05x → 1.51x), leverage falling (2.26x → 1.80x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.7% | 1.05 | 2.26 | 1.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.8% | 1.33 | 2.14 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.2% | 1.63 | 1.96 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 1.51 | 1.80 | 12.3% |
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.