DuPont Decomposition
Why does RUDRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.8% = 2.2% × 1.54 × 2.92
Latest: FY2026
Profitability
Net Margin
2.2%
2.4% →2.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.54x
1.05x →1.54x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.92x
4.21x →2.92x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.0 pp over 5 years. Driven by asset turnover improving (1.05x → 1.54x), leverage falling (4.21x → 2.92x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.4% | 1.05 | 4.21 | 10.8% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.43 | 3.36 | 14.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 1.81 | 2.68 | 18.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 1.64 | 2.74 | 9.1% |
| FY2026 | ₹0Cr | ₹0Cr | 2.2% | 1.54 | 2.92 | 9.8% |
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.