DuPont Decomposition
Why does ADANIENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.6% = 7.3% × 0.49 × 3.51
Latest: FY2025
Profitability
Net Margin
7.3%
2.5% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.22x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.51x
4.28x →3.51x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.2 pp over 3 years. Driven by net margin improving (2.5% → 7.3%), asset turnover improving (0.22x → 0.49x), leverage falling (4.28x → 3.51x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 0.22 | 4.28 | 2.4% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.18 | 4.11 | 0.9% |
| FY2025 | ₹0Cr | ₹0Cr | 7.3% | 0.49 | 3.51 | 12.6% |
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.