DuPont Decomposition
Why does WIPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.0% = 0.4% × 1.67 × 1.59
Latest: FY2026
Profitability
Net Margin
0.4%
0.5% →0.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.67x
1.50x →1.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.59x
1.73x →1.59x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by asset turnover improving (1.50x → 1.67x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.5% | 1.50 | 1.73 | 1.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.4% | 1.54 | 1.70 | 8.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.1% | 1.44 | 1.75 | 7.8% |
| FY2025 | ₹0Cr | ₹0Cr | 2.4% | 1.46 | 1.76 | 6.2% |
| FY2026 | ₹0Cr | ₹0Cr | 0.4% | 1.67 | 1.59 | 1.0% |
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.