DuPont Decomposition
Why does ABINFRA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.6% = 7.7% × 0.84 × 2.26
Latest: FY2025
Profitability
Net Margin
7.7%
1.3% →7.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.62x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.26x
3.71x →2.26x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.5 pp over 4 years. Driven by net margin improving (1.3% → 7.7%), asset turnover improving (0.62x → 0.84x), leverage falling (3.71x → 2.26x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.3% | 0.62 | 3.71 | 3.1% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.98 | 3.55 | 21.3% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 1.17 | 1.92 | 14.0% |
| FY2025 | ₹0Cr | ₹0Cr | 7.7% | 0.84 | 2.26 | 14.6% |
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.