GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Winsol Engineers Ltd (NSE:WINSOL) » Definitions » ROE %

Winsol Engineers (NSE:WINSOL) ROE % : 170.16% (As of Mar. 2023)


View and export this data going back to 2024. Start your Free Trial

What is Winsol Engineers ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Winsol Engineers's annualized net income for the quarter that ended in Mar. 2023 was ₹103.6 Mil. Winsol Engineers's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was ₹60.9 Mil. Therefore, Winsol Engineers's annualized ROE % for the quarter that ended in Mar. 2023 was 170.16%.

The historical rank and industry rank for Winsol Engineers's ROE % or its related term are showing as below:

NSE:WINSOL's ROE % is not ranked *
in the Construction industry.
Industry Median: 6.8
* Ranked among companies with meaningful ROE % only.

Winsol Engineers ROE % Historical Data

The historical data trend for Winsol Engineers's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Winsol Engineers ROE % Chart

Winsol Engineers Annual Data
Trend Mar21 Mar22 Mar23
ROE %
20.73 37.24 85.08

Winsol Engineers Semi-Annual Data
Mar21 Mar22 Mar23
ROE % 41.45 74.48 170.16

Competitive Comparison of Winsol Engineers's ROE %

For the Engineering & Construction subindustry, Winsol Engineers's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Winsol Engineers's ROE % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Winsol Engineers's ROE % distribution charts can be found below:

* The bar in red indicates where Winsol Engineers's ROE % falls into.



Winsol Engineers ROE % Calculation

Winsol Engineers's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=51.807/( (34.393+87.389)/ 2 )
=51.807/60.891
=85.08 %

Winsol Engineers's annualized ROE % for the quarter that ended in Mar. 2023 is calculated as

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=103.614/( (34.393+87.389)/ 2 )
=103.614/60.891
=170.16 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Mar. 2023) net income data. ROE % is displayed in the 30-year financial page.


Winsol Engineers  (NSE:WINSOL) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=103.614/60.891
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(103.614 / 1307.732)*(1307.732 / 281.041)*(281.041 / 60.891)
=Net Margin %*Asset Turnover*Equity Multiplier
=7.92 %*4.6532*4.6155
=ROA %*Equity Multiplier
=36.85 %*4.6155
=170.16 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=103.614/60.891
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (103.614 / 138.256) * (138.256 / 150.434) * (150.434 / 1307.732) * (1307.732 / 281.041) * (281.041 / 60.891)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7494 * 0.919 * 11.5 % * 4.6532 * 4.6155
=170.16 %

Note: The net income data used here is two times the semi-annual (Mar. 2023) net income data. The Revenue data used here is two times the semi-annual (Mar. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Winsol Engineers ROE % Related Terms

Thank you for viewing the detailed overview of Winsol Engineers's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Winsol Engineers Business Description

Traded in Other Exchanges
N/A
Address
Shop No. 301, Madhav Commercial Complex, Near Crystal Mall, Khodiyar Colony, Jamnagar, GJ, IND, 361006
Winsol Engineers Ltd is an integrated engineering, procurement, construction and commissioning company providing Balance of Plant (BoP) Solutions for both Wind and Solar power generation companies. Its services for BoP Solutions includes Foundation work, Substation Civil and Electrical work, Right of Way services, Cabling to substation and Grid, and Miscellaneous work.

Winsol Engineers Headlines

No Headlines