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
6.2% = 2.4% × 1.45 × 1.76
Latest: FY2025
Profitability
Net Margin
2.4%
0.5% →2.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
1.50x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.76x
1.73x →1.76x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.9 pp over 4 years. Driven by net margin improving (0.5% → 2.4%).
Historical Decomposition
Last 4 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% | 1.45 | 1.76 | 6.2% |
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.