DuPont Decomposition
Why does RUCHINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.8% = 2.9% × 0.18 × 1.61
Latest: FY2025
Profitability
Net Margin
2.9%
54.6% →2.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.21x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
2.07x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 23.3 pp over 4 years. Driven by net margin declining (54.6% → 2.9%), leverage falling (2.07x → 1.61x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 54.6% | 0.21 | 2.07 | 24.1% |
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 0.20 | 1.85 | 0.7% |
| FY2024 | ₹0Cr | ₹0Cr | 22.4% | 0.20 | 1.66 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 0.18 | 1.61 | 0.8% |
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.