DuPont Decomposition
Why does WALCHANNAG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-4.1% = -5.3% × 0.31 × 2.46
Latest: FY2026
Profitability
Net Margin
-5.3%
-12.9% →-5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.32x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.46x
5.27x →2.46x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 17.4 pp over 5 years. Driven by net margin improving (-12.9% → -5.3%), leverage falling (5.27x → 2.46x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -12.9% | 0.32 | 5.27 | -21.5% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.39 | 3.18 | 7.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -14.0% | 0.34 | 2.42 | -11.6% |
| FY2025 | ₹0Cr | ₹-0Cr | -33.2% | 0.30 | 2.34 | -23.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -5.3% | 0.31 | 2.46 | -4.1% |
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.