DuPont Decomposition
Why does RUPA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 6.8% × 0.82 × 1.49
Latest: FY2025
Profitability
Net Margin
6.8%
4.7% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.82x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.52x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.3 pp over 3 years. Driven by net margin improving (4.7% → 6.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 0.82 | 1.52 | 5.9% |
| FY2024 | ₹0Cr | ₹0Cr | 5.8% | 0.84 | 1.51 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.82 | 1.49 | 8.2% |
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.