DuPont Decomposition
Why does WELCORP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.6% = 9.6% × 0.82 × 2.23
Latest: FY2026
Profitability
Net Margin
9.6%
6.9% →9.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.82x
0.69x →0.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.23x
2.07x →2.23x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.7 pp over 5 years. Driven by net margin improving (6.9% → 9.6%), asset turnover improving (0.69x → 0.82x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.9% | 0.69 | 2.07 | 9.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.62 | 3.24 | 4.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.6% | 1.43 | 2.11 | 19.8% |
| FY2025 | ₹0Cr | ₹0Cr | 13.7% | 0.92 | 2.04 | 25.6% |
| FY2026 | ₹0Cr | ₹0Cr | 9.6% | 0.82 | 2.23 | 17.6% |
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.