DuPont Decomposition
Why does RVHL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-1.1% = -442.8% × 0.00 × 1.18
Latest: FY2025
Profitability
Net Margin
-442.8%
59.0% →-442.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.00x
0.04x →0.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.20x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.9 pp over 3 years. Driven by net margin declining (59.0% → -442.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 59.0% | 0.04 | 1.20 | 2.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -219.2% | 0.00 | 1.19 | -0.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -442.8% | 0.00 | 1.18 | -1.1% |
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.