DuPont Decomposition
Why does WINDLAS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.1% = 8.1% × 0.99 × 1.50
Latest: FY2025
Profitability
Net Margin
8.1%
8.2% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.99x
0.94x →0.99x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.50x
1.24x →1.50x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.4 pp over 4 years. Driven by leverage rising (1.24x → 1.50x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.2% | 0.94 | 1.24 | 9.7% |
| FY2023 | ₹0Cr | ₹0Cr | 8.3% | 0.97 | 1.31 | 10.6% |
| FY2024 | ₹0Cr | ₹0Cr | 9.3% | 1.00 | 1.39 | 12.9% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 0.99 | 1.50 | 12.1% |
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.