DuPont Decomposition
Why does RPPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 5.2% × 0.97 × 1.90
Latest: FY2026
Profitability
Net Margin
5.2%
4.8% →5.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.97x
1.03x →0.97x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.90x
1.66x →1.90x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.3 pp over 5 years. Driven by leverage rising (1.66x → 1.90x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.03 | 1.66 | 8.3% |
| FY2023 | ₹0Cr | ₹0Cr | 4.2% | 0.96 | 2.02 | 8.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 0.97 | 1.83 | 5.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.4% | 1.03 | 1.98 | 4.9% |
| FY2026 | ₹0Cr | ₹0Cr | 5.2% | 0.97 | 1.90 | 9.6% |
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.